Income u/s 44ad

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MATHU (Querist)
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27 July 2012 Dear Sir,

1.I am going to declare income u/s 44AD which is below 8% and requires audit u/s 44ab, in that case shall i claim depreciation u/s 32 as deduction in calculating income which is below 8%?

aadish

aadish (Expert)
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27 July 2012 Dear Mathu

If you are filing your return as per section 44AD, As per sec 44AD, deductions under section 30-38 including Depriciationa nd unabsorbed depreciation is deemed to have been allowed.

You cannot claim depreciation even while u r declaring income below 8 %.

So I hope u know consequences of declaring income below 8%- 44AA, 44AB gets attracted.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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27 July 2012 Dear Friend, in case of declaration of Income below 8% , you are required to audited your accounts and as well as claim depreciation u/s. 32. Now when you follow section 44Ad and declare 8% your income , you can not claim depreciation . Thanks

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