Regarding Section 44AD
This query is : Resolved
Ravi Mittal
(Querist)
02 April 2011
Sir,
I want to ask you following question.
1.Whether wholesale traders whose turnover is below 60 lakhs.Is eligible for enjoying benefits of Section 44AD.
2.Whether a assessee can Claimed deduction under section 80C(PPF,LIC,ELSS-Mutual Fund)who is enjoying benefits of Section 44AD.
3.Whether a assessee can Claim Business expenses like interest,rent,depreciation after arriving on 8 percent profit on turnover who is enjoying benefits of Section 44AD.
I want to ask you following question.
1.Whether wholesale traders whose turnover is below 60 lakhs.Is eligible for enjoying benefits of Section 44AD.
2.Whether a assessee can Claimed deduction under section 80C(PPF,LIC,ELSS-Mutual Fund)who is enjoying benefits of Section 44AD.
3.Whether a assessee can Claim Business expenses like interest,rent,depreciation after arriving on 8 percent profit on turnover who is enjoying benefits of Section 44AD.
03 April 2011
1. Yes wholesale dealers are eligible to enjoy benefits of section 44AD if turnover is less than 60 lakhs from FY 2010-11 onwards.
2.
Deduction under section 80C can be claimed.
3. Business expenses like interest, rent depreciation etc covered by sections 30 to 38 are not allowed as deduction from 8% profit.
2.
Deduction under section 80C can be claimed.
3. Business expenses like interest, rent depreciation etc covered by sections 30 to 38 are not allowed as deduction from 8% profit.
CA. Lohith Jagadeesh
(Expert)
08 April 2011
Hi,
Deductions under Chapter VIA will be allowed, however as far as the Above expenditures are concerned, the following may be noted.
In computing Taxable Business Income Under Sec 44AD, Expenditures under Sec 30 to 38 are deemed to be allowed, therefore you cannot claim the same from the 8% Amount arrived as Business Income under Sec 44AD.
Thank you,
Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons, ITF Hons
Deductions under Chapter VIA will be allowed, however as far as the Above expenditures are concerned, the following may be noted.
In computing Taxable Business Income Under Sec 44AD, Expenditures under Sec 30 to 38 are deemed to be allowed, therefore you cannot claim the same from the 8% Amount arrived as Business Income under Sec 44AD.
Thank you,
Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons, ITF Hons
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