Business expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 I have income from profession, Facilitation Fee from MLM, and Insurance Agent’s Commission.

I have incurred expenses on fuel, telephone and business promotion expenses..(without any bills).

Can you tell me if I can avail deduction of these from my business income and if yes, what percentage of it?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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29 July 2010 There is no fixed percentage for claiming deduction of these expenses. Ideally you should maintain bills against expenses incurred & claim deduction there of.

However, you may make an estimate of the amount incurred & claim deduction in your ITR4 stating you have not maintained regular books of accounts. Allowance of such deduction shall be at the discretion of the Assessing Officer.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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29 July 2010 You can have your own Income statement in which you can deduct a fare amount of such expenses while arriving at the final profit figure.

But, as Mr. Pradeep also pointed out, since you don't have any bills, you need to convince the assessing officer regarding such deduction, if at all any question be raised by him.

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CA Shiv

CA Shiv (Expert)
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29 July 2010 Without expense bills, you cannot do it....and it wont be allowed by ITo and your auditor as per rules..

Now be practical......

If there is no audit and income lesss than 10 lacs.. do it.. noone will see it...
so depends upon your total income you can put percentage of expense....