Direct Tax, Presumptive Tax System

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This query is : Resolved

Ruchir (Querist)

27 July 2010 Could anybody give me brief drescription about Sec44AF,

If Assessee declares higher income than,
whether assessee can claim expenditure U/S Sec.30 to 38

Gaurav Barmera

Gaurav Barmera (Expert)

27 July 2010 Sec 44AF of income tax act is applicable only to retail trades and the section specifies that the income of the person is deemed to be 5% of total turnover or any other rate declared by the person which ever is higher and this sec is not applicable if the turnover exceeds 40 lakh.
assesse cant claim expenditure u/s 30 to 38

mohinder kansal

mohinder kansal (Expert)

27 July 2010 assessee is free to declare income more than 5% of total turnover. when income is shown on presumptive basis under section 44AF further deduction of expenses under referred section is not deductible. if it is partnership firm salary and interest paid to partners as per deed shall be deductible from the income thus declared.

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