Can i claim for deductable expenses from my professional income

Query 1 - Yes, u are right.

Query 2 - Yes u can claim all those expenses which are related to discharging ur duty.

Query 3 - Teaching profession is not a notified profession as per section 44AA. So the books are only to be audited if gross receipts exceeds Rs. 60 Lakh. But it would be advisable to keep in record all the bills for expenses incurred by you for the profession. Also, from AY2011-12, assessee has to show 8% income on his gross receipts under section 44AD and pay tax according to the slabs. In this case no books of accounts are required to be maintained. But if you think that your actual income after incurring exepnses is below 8% of gross receipts then u have to maintain books of accounts and get them audited under section 44AB. 

Originally posted by : CA. Deepak Narula
	Query 1 - Yes, u are right. Query 2 - Yes u can claim all those expenses which are related to discharging ur duty. Query 3 - Teaching profession is not a notified profession as per section 44AA. So the books are only to be audited if gross receipts exceeds60 Lakh. But it would be advisable to keep in record all the bills for expenses incurred by you for the profession. Also, from AY2011-12, assessee has to show 8% income on his gross receipts under section 44AD and pay tax according to the slabs. In this case no books of accounts are required to be maintained. But if you think that your actual income after incurring exepnses is below 8% of gross receipts then u have to maintain books of accounts and get them audited under section 44AB.

Agree :)

Originally posted by : CA. Deepak Narula
	Query 1 - Yes, u are right. Query 2 - Yes u can claim all those expenses which are related to discharging ur duty. Query 3 - Teaching profession is not a notified profession as per section 44AA. So the books are only to be audited if gross receipts exceeds60 Lakh. But it would be advisable to keep in record all the bills for expenses incurred by you for the profession. Also, from AY2011-12, assessee has to show 8% income on his gross receipts under section 44AD and pay tax according to the slabs. In this case no books of accounts are required to be maintained. But if you think that your actual income after incurring exepnses is below 8% of gross receipts then u have to maintain books of accounts and get them audited under section 44AB.

very well explained Sir......thank you!!!

Well explained Sir.

In point no.3, you reffered about section 44AD i.e for presumptive income @ 8%. But Sec 44AD is applicable for BUSINESS, not profession. And Mr. Sanjit is providing professional services. 

So, in my opinion Sec 44AD is not applicable in his case. 

Please correct me if I am wrong.

I explained in point no. 3 that teaching is not a specified profession u/s 44AA, so it comes under business as per my view and section 44AD can be applied in this case as well.

Audit under 44AB will be applicable if your gross receipts from teaching profession will exceed 15 lakhs. Not 60 lakhs. 60 Lakhs is for business.

Maintenaing Books of Accounts under 44 AA is not compulsory in your case.

And 44 AD is not applicable for profession. so not to worry about 8% profit.

You can claim expenses like Petrol, depreciation on them, Depreciation on books and other stationary expenses etc...

Originally posted by : CA. Deepak Narula
	I explained in point no. 3 that teaching is not a specified profession u/s 44AA, so it comes under business as per my view and section 44AD can be applied in this case as well.

its not business. section 44AD cant be applied here by any strech.

I will come straight to query 3

Section 44AA(2) will only be applicable to you in case your professional Income exceeds Rs120000

OR

Gross receipts exceeds Rs. 1000000

In case either of above two exceeds you are under compulsory obligation to maintain books of accounts.

Now coming to TAX audit of person carrying on profession (44AB)-:

As you are carrying on profession tax audit will be applicable to you only if your gross receipts exceeds Rs. 1500000.

Professional  income - : Income after deducting all your professional expense from your professional income.

Gross receipt -: All your professiona receipts(before deducting any expense)

I hope this will clarifies your doubt.

Regards

AMIT MEHTA

Dear All Members

I hav e a query that one of my client is having a Loss from teaching amounting to Rs. 18 lacs i.e Gross reciepts Rs. 7 Lacs and Expenses Rs. 25 Lacs , as it is a newly set up business of teaching.

So I just wanted to know that whether he needs his accounts to get audited under Section 44AB to claim loss (which can be set off against interest on FD of  21 Lacs) or whether  he is covered under Section 44AD as he is teaching as a self employed.

Thanks

CA Gaurav Bansal

Sir i want to know that a person reciving salary Rs 22500/. as a phsio and he also attend some camps and recieved 256000 as professional fee and on that camp income TDS is deducted 194J so my question is that can he claim any exp. on that income or Ts 256000 is include in his income and no expeses claim.?