N/P as per P & La/c (after interest & before remuneration) =10000 Interest on capital @ 12% =45000 FBT paid in the p.yr =500 Income tax for the firm paid in the p.yr=1250 Depreciation provided =5000 Depreciation as per IT Rules =5500
What will be its total income? Whether this firm can calculate profit as per Section 44 AF? If so, what will be the profit & total income?
22 May 2009
My dear, to calculate the profit U/s 44AF, you have to give us the figure of Total turnover.If the firm is in retail trade and turnover is less than Rs.40 lacs, then it can compute profit U/s 44AF
23 May 2009
N/p. after interest 10000/- less depreciation 500/- (5500-5000) ------- Taxable income 9500/- Less remunaration upto 50000/- allowable 50000/- ------- Net Loss 41500/- FBT not allowable. If it deals in retail trade then agreed with the opinion of CA Bharat.
CAclubindia
