suppose professional income for fees collections income rs:24 lacs
profit declared 50 percent rs:12 lacs as per sec 44ada .
1.cash gift to brother value rs:2 lacs through on online mode
2.medical equipment value rs:2 lacs depreciation value rs:30,000/-
question:
assess net profit show in it returns value rs:9,70,000/- (rs:12 lacs -rs:2 lacs(gift value)-rs:30,000/-(depreciation value) correct or not correct.
While calculating income under section 44ada, seperate deduction on account of depreciation is not allowed.
Amount of gift paid is also not deductible. Therefore your net profit should be equal to 12 lacs only.
Do like my reply if you are satisfied so that I'll be motivated to answer more 🙂
CAclubindia
