Sec 44ad
This query is : Resolved
02 April 2016
Respectable Experts
A firm have a turnover of Rs. 82 lac.and want to declare profit @ 8% u/s 44ad. but actual profit is more then 8%. so for adjustment of profit i want to charge interest on capital of proprietor @ 12% P.A. and by this i want to claim this interest as expenses and interest will also directly transfer to capital account.
Can I do so. if know then please tell me any other way to adjust the profit with income tax return
A firm have a turnover of Rs. 82 lac.and want to declare profit @ 8% u/s 44ad. but actual profit is more then 8%. so for adjustment of profit i want to charge interest on capital of proprietor @ 12% P.A. and by this i want to claim this interest as expenses and interest will also directly transfer to capital account.
Can I do so. if know then please tell me any other way to adjust the profit with income tax return
02 April 2016
Sir are you asking for Proprietorship concern ....?
02 April 2016
yes this firm is under HUF concern
04 April 2016
Still waiting for the reply. please reply
04 April 2016
U can show profit more than 8% no issue, why you are showing the Interest on Capital.
See minimum 8% profit required under section 44AD there is no maximum limit so u can show higher profit.
Why you are going for interest on Capital ?
See minimum 8% profit required under section 44AD there is no maximum limit so u can show higher profit.
Why you are going for interest on Capital ?
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