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.......
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