44 ab -accounting

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ACS Gaurav Jain (Querist)
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19 September 2013
if i Declare Presumptive Profit 6000000*8% = 480000. than i can deduct salary and interest on capital.(salary 200000+ interest 280000)
now 0

but how to do accounting of these in accounts.

because there is loss of Rs. 500000 in actual books without providing interest and salary

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 If there is actual loss in the books, then you avoid presumptive taxation.

Nevertheless, you are at liberty to claim interest and salary to partners after computing 8% profit.

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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22 September 2013 After deducting remunaration and intrest there is loss. Can i carry forward this loss or not

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 September 2013 Gaurav, if u want to carry forward loss, you need to maintain proper accounts, get the tax audit done and claim proper loss in the books and tax returns. Under 44ad, loss doesnt come into picture.

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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22 September 2013 If intrest on partner capital is more than profit computed under 44ad than

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 September 2013 risky claim to make I may say (from litigation angle)

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