Can I claim part of laptop expenses that I bought before generating income?

Page no : 2

saurabh sawlani (Self employed ) (2191 Points)
Replied 18 September 2020

Papinder singh-ji.. go and consult to your nearest CA / TAX PROFESSIONL... to get better advice

Upgrade to CAclubindia Pro. Subscribe Now!

Papinder Singh (Taxpayer) (72 Points)
Replied 18 September 2020

Saurabh-ji, thank you for your advice, but I prefer doing taxes on my own, this is why I spend a lot of time researching... I now consulted with the FAQs on the Indian Income Tax website, there are some helpful FAQs when browsing Section 44AA of Income Tax Act, I found this question to be very helpful:

What books of account have been prescribed to be maintained by a person carrying on business/profession under the Income-tax Act?

The Income-tax Act does not prescribe any specific books of account for a person engaged in business or in non-specified profession. However, such a person is expected to keep and maintain such book of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of the Act

Since I already have a personal book of accounts, I might be able use this when required in case the assessing officer wants to compute my total income. Please correct me if I am wrong.

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 22 September 2020

Most of the transactions will appear in 26AS and you can support it with bank statement..

You just need to keep the books for the gross amount mentioned in ITR computation u/s 44ADA.

No other books required

1 Like