Software Sales through website- Business or Profession

[Shan S]

Selling Software through website and selling platforms will come under 44AD or 44ADA?

Small programs which are paid by users in the website and also in the selling platforms too

Does it come under business or profession? what is other professional service in Business Code 44ad is for?

 

[Sadanand Bulbule]

In my understanding, creating software products and selling them repeatedly online amounts to "business" covered under Section 44AD of the IT Act,1961.

However, writing code as per client requirement or giving technical consultation is a "profession" covered under Section 44ADA of the IT Act.

Now you have to double check the facts and determine the relevant provision that suits them.

[TANAY GHILDIYAL]

I fully agree with the views of Mr. Bulbule Ji. 

AI Summary

Selling software products is business under Section 44AD; coding services are profession under Section 44ADA Selling software products repeatedly through a website and online platforms is considered a business activity under Section 44AD of the Income Tax Act, 1961. In contrast, providing customized coding services or technical consultation is treated as a profession under Section 44ADA. The classification depends on whether the software is sold as a product or developed as a service for clients. The taxpayer must assess their specific activities to determine the appropriate tax provision.