Help me pick currect business/profession code based on activity to avoid notice for non compliant code

Income Tax Income from Business or Profession
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1

I need the correct and most suitable codes for Section 44AD and Section 44ADA for a small business.

1. Section 44AD Selling off-the-shelf (non-customized) software licenses via website (B2C).

2. Section 44ADA Providing software consultancy services.

I need the most accurate and appropriate codes for both categories so that I do not receive any notice from the Income Tax Department for using an incorrect or non-compliant business/profession code.

2

Hello @Mr.D,

Welcome to the community!

For Section 44AD, there isn’t a very specific code only for selling software licenses online. You can use 09028 – Retail sale via internet / e-commerce (commonly used for online product sales). Another option could be 21008 – Other services, if your activity doesn’t fit perfectly into a specific category.

For Section 44ADA, software consultancy generally falls under 16005 – Engineering and technical consultancy.

Hope this helps!