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Salary not booked as expense

This query is : Resolved 

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.

Divyesh Jain

Section 44AD, declaration of profits under presumptive assessment, does not mandate any such expenditures to be carried forward to future years, including depreciation.

Ok, so does that mean that I can directly declare 8% as profit on the turnover amount without actually incurring the expenses.

Yes, you can do so....

Thank you very much Sir for your valuable information. @Dhirajlal @Seetharaman

You are welcome.......

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