Computaion of Income

This query is : Resolved

CA KALPESH LAKHANI (Querist)
Follow

01 February 2008 i have a client, who has a income from HP-Rs,187822,and he is partner in 2 firms,from both firm he is getting remuneration & interest. Apart from that he is also doing construction business and he is taking benefit of Section 44AD.He incurred some expenses like Petrol Exp.,Dep.On Car,Interest on Car Loan,Professional Fees against income from Partnership Firm. His income U/s 44Ad is Rs.17220,Remuneration+Interest is Rs.57046 and against this both income he has incurred above exp. Rs.145234. Now Question is that whether Income U/s 44AD be set off against above Expenses or 44Ad will charge sepreatly?

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
Follow

01 February 2008 44AD IS NET INCOME AFTER ALL EXPENSES..........SO ALLOWING OF FURTHER EXPENSES IS NOT AS PER THAT SECTION

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
Follow

02 February 2008 SEC 44AD IS INCOME OF CONTRACTORS AFTER ALLOWING OF ALL EXPENCES THAT IS PRESUMPIVE INCOME THAT IS 8% OF GROSS RECEIPT NO DEDUCTION ARE ALLOWED UNDER THIS SECTION

Upgrade to CAclubindia Pro. Subscribe Now!