RENTING OF MACHINERY INCOME

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KUMAR trp707@gmail.com (Querist)
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10 February 2011 SIR
WE ARE SUPPLY OF MACHINERY (GANGASAW MACHINE) TO GRANITE QUARRY. THE COMPANY GIVE RS. 4 80 000 /-DEDUCTION tds 14580/- 194I UNDER RENT AND ISSUED TDS CERTIFICATE TALLY WITH 26AS AMOUNT RS. 14580/-.
THE FINANCIAL YEAR 2009-10 RECEIVED TOTAL RENT 4 80 000/-.
HE ALSO CONTRACT WORK TAKE rS. 1175406/- tds 23824/- DEDUCTED.

HE ALSO HAVING BUSINESS OF AUTO MOBILE SHOP TURNOVER IS (tot DEALER ) RS. 1350000/- SALES FIN 2009-10. WE ARE CLAIM 6% U/S 44AF.
THIS RENT INCOME IS UNDER HEAD OF INCOME FROM OTHER SOURCE.
HOW TO CALCULATE TAX ON RENTAL INCOME IS FULL 4.80LK AND MACHINERY DEPRECIATION DEDUCTION AND OTHER DEDUCTION IS APPLICABLE. CAN KINDLY GUIDE THE RENTAL INCOME CALCULATION
OUR CALCULATION IS :

BUSINESS INCOME IS U/F 44AF 6% DECLARED =81000
BUSINESS INCOME IS U/F 44AD 9% =105787/-
OTHER SOURCE INCOME IS 480000/- LESS DEPRECIATION IS NOT KNOW MACHINERY VALUE SO HOW TO CALCULATION DEPRECIATION UN KNOWN MACHINERY VALUE, REINING DEDUCTION CAL APPLICABLE.
HE HAVING LIC IS 131432 AGRIGATE 100 000
TOTAL TDS IS 38404
CAN GIVE TAX ADVICE AND CALCULATION?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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11 February 2011 Dear Sir,
Firstly, Rent of Machine should be computed under Income From Other Sources if it is not your main business activitiy and you can also deduction depreciation and Other allowed deduction to compute taxable rent income.

Secondly, Mobile shop business would fall u/s 44AF but Profit % is 5% not 6%, please recompute.

Thirdly, 44AD is applicable only for civil construction or labour supply for civil construction. If you contract work is that nature than if would be fall u/s 44AF and if not then this will be treated as normal business activitiy and Percentage of income u/s 44AD is 8%.

regards!!!
Dinesh S. Adhikari

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KUMAR trp707@gmail.com

KUMAR trp707@gmail.com (Querist)
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11 February 2011 sir

can we excess income (6%) declared u/s 44 AF.
a lot of thank u for quick reply.

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