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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2011 i worked on contract for 11 months and 1 month for on salary
and i get it as professional fee for 11 months.
now question is that which expenses i can show in income and expenditure account?
Can i show house rent in expenditure for 11 month.
if i get HRA for one month in salary.

Preety Parik

Preety Parik (Expert)
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12 August 2011 1.Professional fees and Income from contract shall be credited to P/L A/C and expenses related to contract work and profession shall be debited to P/L A/C.
2. Payment of House rent is personal expenditure. Rent paid for 11 months cannot be claimed in P/L A/C.
3. If HRA is included in one month's salary then house rent of one month can be claimed against salary as per rules.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 August 2011 I agree with the expert.

Why do you not opt for Section 44AD in respect of your contract income in case it does not exceed Rs. 60.00 lacs during the year. You need no to do all such exercise as maintenance of books of account etc.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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13 August 2011 Sir 44AD is not applicable in this case because the assessee is getting professional fee during the year. section 44AD is not applicable to professional

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2011 can he claim rebate for 11 month house rent in section 80GG?

Preety Parik

Preety Parik (Expert)
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13 August 2011 The option of 44AD was advised to you only for contract income. You can claim deduction u/s 80 GG for 11 months rent paid.

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2011 No you can not claim the rebate U/S 80GG if you are getting HRA any time in that assessment year