Under sec. 44AD of IT act, 8% on gross Sales or receipt can be disclosed as deemed income. IF the party has received INTEREST SUBSIDY against the Term Loan aken by him for which he has claimed interest as an expense in the earlier years. Should the deemed income be inclusive of that interest subsidy or should be other than the interest subsidy. for example, sale is 40.00 lacs, deemed income rs. 3.20 lacs, suppose the party has received rs. 1.00 lac as interest subsidy. should the party disclose net income of rs 3.20 lacs (i.e. 8% is inclusive of that interest subsidy) or 3.20 + 1.00 = 4.20 lacs ??????
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