Salary not booked as expense

This query is : Resolved

DIVYESH JAIN (Querist)
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20 September 2021 Dear Sir,

I had not shown Salary expenses of Rs. 1 lac in my Profit and loss account as there was not much profit earned during the year. I showed it as Advance Salary paid.

I want to know whether this Advance Salary can be booked as expense in future years to come when I want to adjust excess profit earned during the year.

My return is filed under Section 44AD.

Please help me in this matter.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 September 2021 Section 44AD, declaration of profits under presumptive assessment, does not mandate any such expenditures to be carried forward to future years, including depreciation.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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20 September 2021 Ok, so does that mean that I can directly declare 8% as profit on the turnover amount without actually incurring the expenses.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 September 2021 Yes, you can do so....

DIVYESH JAIN

DIVYESH JAIN (Querist)
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21 September 2021 Thank you very much Sir for your valuable information. @Dhirajlal @Seetharaman

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 September 2021 You are welcome.......

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