Salary not booked as expense
This query is : Resolved
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
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
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.
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.
21 September 2021
Yes, you can do so....
21 September 2021
Thank you very much Sir for your valuable information. @Dhirajlal @Seetharaman
21 September 2021
You are welcome.......
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Soyabean hsn code and gst rate
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Treatment of Pension ?annuity returns on PMVY
- Last year TDS Claim
- RNOR Status but Investments more than Income
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
