Query about s.44ad computation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2015 HELLO SIR,

I HAVE FOLLOWING DETAILS WITH ME
TOURN OVER 1250000
PROFIT AS PER P&L 210000
DEPRECIATION IN P&L 90000
AS PER 44AD PROFIT(8%) 100000
AS PER 44AD 8% OR SUCH HIGHER PROFIT SHALL BE TAXABLE, WHILE COMPARING WHICH PROFIT SHOULD I TAKE, IS IT 210000(16.8%) OR 210000+90000(i.e., dep added back) ?
kindly clarify my doubt sir

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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08 January 2015 As per section 44AD, all expenses including depreciation are deemed to have been claimed when profit is declared @ 8%.

There is no need to add back depreciation in my opinion since otherwise also you are declaring more than 8%.

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