RAJ KUMAR (FINANCE MANAGER) (1393 Points)
21 March 2010HELLO FRIENDS, IF ANYBODY HAS INCOME FROM DAIRY FARMING
IN THIS CASE WHETHER LIVESTOCK IS HIS CURRENT ASSET OR FIXED ASSET
AND IN ITR 4 WHAT SHOULD BE ITS NATURE OF BUSINESS
WHICH CODE I HAVE TO USE?
PLS. HELP ME
IS IT COMPULSORY TO MAINTAIN THE BALANCE SHEET
MY GROSS RECEIPTS ARE RS. 200000. FROM THE SALE OF MILK AND LIVESTOCK.
Amir
(Learner)
(4016 Points)
Replied 21 March 2010
Dear Sir,
Cattle/Livestock is treated as a special item & instead of depreciation the amount spent on them is allowed as follows u/s 36-
(vi) in respect of animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the amount, if any, realised in respect of the carcasses or animals;
Books as per Sec 44AA will be requied if ur gross receipts are in excess of Rs. 10 Lakhs or Ur Income from business exceeds Rs. 1.20 Lacs......
Rajat Singhal CA,CS,CFA
(Senior Manager (F&A))
(254 Points)
Replied 22 March 2010
Dear Amir Bhai, you are absolutely correct as usual....
One of our client is also into the same business and he is using others - 0124.
Avinash Singh
(Article)
(69 Points)
Replied 29 March 2014
sir please provide detail about section 36 regarding special item and its treatment and if a person runs a business of sole propriotership then what will the treatment regarding livestock
CAclubindia
