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Eligible assessee under section 44ad of it a.y.2011-12

Valerian Dsouza (Manager Audit & Taxation) (413 Points)

29 February 2012

An Individual Assessee who is carrying on business of passenger Transport contract with companies,

having turnover less than 60 lakhs in F.Y. 2010-11 would like to opt for section 44AD in assessment year 2011-12

Whether he/she will be a eligible assessee in the case of followings :

1. claims housing interest deduction u/s. 24b of IT

2. claims LIP & housing loan repayment u/s. 80C. mediclaim u/s. 80D

3. Files IT return after the due date (31/7/2011)

4. Whether profit on sale of depreciated asset (bus) can be included in the 8% turnover

5. show more than 8% Net profit of the turn over ?

Kindly help.

Regards,

Valerian D'Souza

Manager, Accounts

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3 Replies

SIDDHARTH KOTHARI (N.A) (280 Points)
Replied 29 February 2012

eligible assessee as per the Sec 44AD includes the above assessee as the assessee is not in the business of plying ,hiring or leasing of goods carriages.

1) Ineterst paid under sec 24b will fall under the head of the income from the house property and not fall under the head income from business or profession.

2) LIP paid under section 80C and medical premium paid under under section 80D are not the criteria to decide the whether the assessee can be eligible assessee or not.

3) If the assessee files the late return then there is nothing wrong .There is the provision in Income tax act for filing the late return.it is also not the criteria to decide whether the assessee is the eligible assessee as per sec 44AD or not.

4)if you are filing your return as per the provsion of 8% of Turnover or gross receipt then you can not cliam any exps from sec 30 to 43B.They are deemed to be allowed.

5)you can show the profit more then 8% of gross receipt or turn over which will not affect your eligibilty creitera of eligble assessee.

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