Tag Archives: section 44ad

File ITR4 Under 44AD In India

Right from the very begining, your business is made as a domaining startup; once you register (or transfer) your purpose of life as your domain name at https://system.sangkrit.net. That is the way of enterprising your education.

Being a domaining startup, until your gross receipts in a financial year do not exceed ₹ 2 crore, you are entitled for presuming only 6% of all that as your annual income to file for income tax in India under section 44AD. Take care to receive all the payments only digitally in your personal bank account so that the gross receipts remain digitally received; otherwise your anuual income is to be presumed as 8% of the payments received manually.

  1. Fill the simplest ITR4 form if you do not have to file for any capital gains.
  2. Fill the ITR3 if you have to file for capital gains as well.

You just cannot show income less than the above percentage of the gross receipts/turnover since in such a case it is mandatory to maintain books of accounts and have a tax audit under 44AB.

In any case, write down ‘your domain name’ as the name of your business. Suitable business code is ‘14010’ as ‘other computation related services’. Business description is ‘domaining’ whether whatever you do to make money upon your domain.

You need not having any office, shop, current account, accountant or audit. Domaining your purpose of life only with your personal bank account; digitally receiving all the income and making any necessary expenses itself; is enough to make your living.

A Domainer In India Can File Income Tax Return Under Section 44 AD

Register your idea of doing business as a domain at http://system@sangkrit.net to start selling with online support from system@sangkrit.net that is charged hourly per terminal. Make and receive all payments only via your personal bank account and if you are not receiving more than ₹20000000 per annum you are free to take presumptive route to income tax under section 44 AD giving your domain name as your business name.

Only 6% of your total receipts is considered as your profit when you receive all money as business direct into your bank account so you are liable to pay tax on that before 15th of March every year without any accounts or deductions involved.