Depriciaion when flat rate of profit scheme is applicable

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dhawal shah (Querist)
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28 January 2009 Can we deduct depriciation after taking income in flat rate , in 44AD 8 % scheme...

Ref : as per the CBDT circular no : 29d (xix )-14 dated 31-08-1965

please guide me about this circular ,

whether flat rate of profit is applicable beyond the limit of 40 lacs..

when the contractor has not kept the books of account..

please guide me about this matter.....

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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29 January 2009 No, depreciation is deemed to have been claimed.(Refer proviso to sub section 1)
The section as such the flat rate does not apply in case the receipt is 40 lacs or more(Refer sub section 2)

dhawal shah

dhawal shah (Querist)
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29 January 2009 Dear sir ,
please guide me about this circular

Ref : as per the CBDT circular no : 29d (xix )-14 dated 31-08-1965

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CA Tirth Ajani

CA Tirth Ajani (Expert)
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04 March 2009 if u opt for section 44AD than all the deductions U/S 30 to 38 including depreciation, are deemed to have been allowed and no further deductions are allowed. except in case of firm normal deduction in respect of salary and interest to partners U/S 40(b) shall be allowed.