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Section 44AD

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This query is : Resolved

Amit (Querist)

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

Abhishek Mohta

Abhishek Mohta (Expert)

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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