saection 44 AF

This query is : Resolved

JYOTHILAKSHMI.T.S

JYOTHILAKSHMI.T.S (Querist)
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22 May 2009 For A.YR 2009-10:- A firm has:-

N/P as per P & La/c (after interest & before remuneration) =10000
Interest on capital @ 12% =45000
FBT paid in the p.yr =500
Income tax for the firm paid in the p.yr=1250
Depreciation provided =5000
Depreciation as per IT Rules =5500

What will be its total income?
Whether this firm can calculate profit as per Section 44 AF?
If so, what will be the profit & total income?

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)
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22 May 2009 My dear, to calculate the profit U/s 44AF, you have to give us the figure of Total turnover.If the firm is in retail trade and turnover is less than Rs.40 lacs, then it can compute profit U/s 44AF

Ratan Sharma

Ratan Sharma (Expert)
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23 May 2009 N/p. after interest 10000/-
less depreciation 500/-
(5500-5000) -------
Taxable income 9500/-
Less remunaration upto
50000/- allowable 50000/-
-------
Net Loss 41500/-
FBT not allowable. If it deals in retail trade then agreed with the opinion of CA Bharat.

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