Abhay (a) (44 Points)
02 March 2013Hello
One of my Client is working in a company as a professional consultant and receiving Professional fees.
now filling his business income return for the current yaer to be filled, so which expenses he can claim in his return that will be allowable so that the tax would be saved.
other issue is that house in which he is residing is on rent, can he claim rent as an expense in his return although major work is performed in the company's office.
travelling and moblie exepnses can he claim.
Abhay
Devendra
(Chartered Accountant)
(4775 Points)
Replied 03 March 2013
Following are the expenses that can be shown :-
1) Travelling Exps
2) Printing and Stationery
3) Mobile Exps
4) Salary Exps (Salary to Assisstant, Apprx. Rs. 2000 p.m)
5) Depreciation can be claimed on the Car / Bike and Computer / Laptop owned by him
6) Repairs and Maintainence Exps of Car / Computer
7) Bonus to Assisstant
All the above Expenses are allowable.
Regards,
Devendra Kulkarni
Abhay
(a)
(44 Points)
Replied 03 March 2013
Mr. Devender thanks for that but issue of rent is not solve please clarify that also if you can
Devendra
(Chartered Accountant)
(4775 Points)
Replied 04 March 2013
1) Half of the Rent can be claimed as Expense, as other half of the House is used for Residential purpose.
OR
2)Refer the below link for Section 80GG of the Income Tax Act, 1961.
/articles/most-ignored-section-80gg-deductions-in-respect-of-rents-9611.asp#.UTTLOqI0RBw
Your client will be eligible for the deduction of Rent paid by him, if he is self - employed.
Regards,
Devendra Kulkarni
Abhay
(a)
(44 Points)
Replied 04 March 2013
you have not understood the problem please read it again.
CA.D.RAGAVAN
(CHARTERED ACCOUNTANTS)
(219 Points)
Replied 05 March 2013
Dear Abay, Devendra Clear in his Advice. You, Uourself mentioned that the Rent paid is for his residense. It is personal Expenses. You Can not Claim Rent Paid to Residense as Professional Expenditure. Alternatively, You can apply 80GG and claim benefits, if any. Other Alternative is, you can treat, Your assessee is maintaining a Office at Residense and 50% of Rent pertains to his Professional Activities and Claim 50% of Rent Paid as Professional Expenditure
Abhay
(a)
(44 Points)
Replied 05 March 2013
Mr. D.Ragavan thanks for the advise but how it can be prove that professional work is done from home, as all the work is performed in company's office.
one more thing the bills of medicine can be claimed any where as deduction or expenses as he does not have any medical policy or mediclaim policy.
thanks to both of u once again
Abhay
Devendra
(Chartered Accountant)
(4775 Points)
Replied 05 March 2013
No. The Bills of Medicine shall be treated as Personal expenses. Hence shall be treated as Drawings.
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