21 July 2009
can somebody tell me that my gross receipt from civil construction is Rs. 35 Lacs and i have paid Rs. 5 Lac as a interest on loan taken by me and also received Rs. 1 lac on loan given by me. Can i take the presumptive income-8% of Rs. 35 Lacs or 8% of Rs. 35+1=36Lacs
or 8% of Rs. 35 Lacs+Rs. 1Lacs as income from other source or Only 8% of Rs. 35 Lacs and Rs. 1Lac will be adjust from Rs. 5Lacs
22 July 2009
As per section 44AD if an assessee is involved in the business of civil construction etc. and has gross receipts form that business less than Rs. 40,00,000/- then the assessee can claim presumptive taxation under this section. So, presumptive taxation will apply on Rs. 35,00,000/- only.
Again Rs. 1,00,000/- will be adjusted with Rs. 5,00,000/- only and only if that loan taken was for the purpose of giving loan to someone else.
Otherwise Rs. 1,00,000/- will be taxed under the head income from other sources.
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