Section 44ae-urgent

This query is : Resolved

Ritesh (Querist)
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28 October 2014 Hi Experts

Profit and loss account includes Truck income on presumptive basis u/s 44AE.My query is:-

1.Whether we can show the value of truck in Balance sheet with amount of depreciation,though it is not charged to P/L.

OR

It is wrong to show the value of Truck in B/S

Please clarify.

Best Regards
Ritesh

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 October 2014 Depreciation is deemed to have been allowed as a deduction while computing income u/s 44AD or 44AE.

Accordingly you should show the truck at cost less depreciation.

Ritesh

Ritesh (Querist)
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28 October 2014 Siddhartha Ji

Thanx for your prompt reply.So,as per your opinion Presumptive income(u/s44AE) to be credited to PL and the asset to be shown in the B/s.But I found some different opinion in this forum...that there is no need to take the asset in the B/s.

So which method should I follow?

Regards
Ritesh

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 November 2014 All assets are required to be shown in the Balance Sheet. So you should show the truck as an asset in the Balance Sheet.