REGARDING 44AD RETURN

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This discussion clarifies how to file a tax return under Section 44AD, which requires declaring a minimum of 8% profit on cash turnover. It addresses the concern that including depreciation in the profit and loss account can reduce the declared profit below the 8% threshold. The key takeaway is that for 44AD, the declared profit is presumptive and separate from book profit, meaning depreciation claimed in your books doesn't affect the 8% minimum you must declare.

ABHI KUMAR

ABHI KUMAR (Querist)

04 July 2024 HAME 44AD KE HISAB SE 8 PERCENT PROFIT DIKHA KE RETURN FILE KARNA HAI LEKIN JO DEPRICATION HAI VO YADI HUM PROFIT AND LOSS MEIN DEBIT KARTE HAI TO. HAMARI PROFIT RATIO 8 PERCENT SE BI KAM HO RAHA HAI ARROND 4 PERCENT TO ABH HUME DEPRICATION BI LAGANA HAI PROFIT BI 8 PERCENT RAHE USKE LIYE KYA KARNA HOGA

THANKS IN ADVANCE

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 July 2024 Under presumptive assessment you have to declare minimum 8% profit over cash turnover, assuming the depreciation is already been claimed.
There is no relation of book profit and declared profit under sec. 44AD IT act.

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ABHI KUMAR

ABHI KUMAR (Querist)

04 July 2024 MANY THANKS SIR BUT HUM BALANCE SHEET BANANTE HAI BECASUE YADI IN FUTURE KABI AUDIT HUI TO HAME OPENINB BALANCE EASILY MIL JAYENGE YADI AS PER BOOKS PROFIT AS PER ACCOUNTING STANDARDA YADI KARNA HO TO ISKA TREATEMENT KYA HOGA. ASSUMING THIS BALANCE SHEET FOR AUDIT

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 July 2024 As I said before, you maintain books as per actual figures. ITR declaration is just PRESUMPTIVE !!!!

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ABHI KUMAR

ABHI KUMAR (Querist)

04 July 2024 OK SIR THANKS DHIRAJLAL JI SIR MANY THANKS

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

05 July 2024 You are welcome.

Dhirajlal Rambhia