26 December 2013
Net Profit as per Profit & Loss a/c. is more than 8% of Turnover, therefore deemed income u/s. 44ad will be equal to net profit. Can I claim deduction in respect of depreciation as per books and as per income tax and 1/4th of personal expenses
26 December 2013
CERTAIN OTHER POINTS OF CONSIDERATION
An assessee opting for the above scheme shall be exempted from maintenance of books of account related to such business as required under section 44AA.
The assessee can voluntarily declare a higher income in his return
An assessee opting for the above scheme shall be exempted from payment of advance tax related to such business.
In the case of assessee being firm, the normal deduction in respect of salary and interest paid to the partners shall be allowed as deduction out of such presumptive income subject to conditions and limits specified in clause (b) of section 40.
In case assessee claims that he has earned income lower than specified percentage and such income is more than maximum amount not chargeable to tax, Ss. 44AD(5) and 44AA(2)(iv), mandates him to maintain books of accounts and other documents as specified u/s 44AA, get them audited from the accountant and furnish report as required u/s 44AB.
03 October 2021
The WDV of assets will be reduced to as per depreciation claim. But the same is not allowed for deduction from deemed income. No personal expenses are allowed to be deducted.
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