02 April 2016
Respectable Experts A firm have a turnover of Rs. 82 lac.and want to declare profit @ 8% u/s 44ad. but actual profit is more then 8%. so for adjustment of profit i want to charge interest on capital of proprietor @ 12% P.A. and by this i want to claim this interest as expenses and interest will also directly transfer to capital account. Can I do so. if know then please tell me any other way to adjust the profit with income tax return
04 April 2016
U can show profit more than 8% no issue, why you are showing the Interest on Capital. See minimum 8% profit required under section 44AD there is no maximum limit so u can show higher profit. Why you are going for interest on Capital ?
CAclubindia
