presumptive income u/s 44ad

unabsorbed depriciation cannot be deducted as minimum 8% income is to be declared and it is deemed that all deductions has already been given effect, if you have to claim unabsorbed depreciation than you have to maintain books of accounts , and can show income less than 8%

i think mohit is totally correct as the presumptive taxation does not allow further dedction of any other amount under section 32 to 38 ...

and hence the unabsorbed depreciation is not allowed as dection for accounting point of view

also if the company falls under the mat then the unabsorbed tax loss and dep cn be claimed

yes u can't set off unabsorbed depreciation but if u have any brought forward loss of business then u can set off that business loss with this years business income .....

totally aggee with these answer.

Thank u all very much....

My assessee is a Partnership firm engaged in the buisiness  civil contractor and want to declare his income u/s 44AD. My querry is that whether partner salary is allowable and if allowable then on what amount it is to be deducted. Will anybody help me explaining through compuation of income. 

Dear Chand Akhtar,

Partner's Salary will be allowed as deduction even in case of presumptve taxation u/s 44AD.

Step 1 - Calculate 8% of turnover

Step 2 - Step 1 MINUS Interest not exceeding 12% per annum, if any on Loan to partners...

Step 3 - Apply this slab on the amount calculated in Step 2

Step 4 - Resultant Figure in Step 3 is the amount of salary which will be allowed as deduction to firm...(Remember the same will be taxable in the hands of partners..

Good Analysis Amir. Keep it going.. Cheers.

Dear Chand,

U got it na...that's gr8 and plz yaar no need to call me sir...I am still learning.................

Sorry Amir I`ll take care in future.

are small manufacturing units turnover below 40 lacs covered in presumtive tax  in this structure