Section 44ae-urgent

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This query is : Resolved

Ritesh (Querist)

28 October 2014 Hi Experts

Profit and loss account includes Truck income on presumptive basis u/s 44AE.My query is:-

1.Whether we can show the value of truck in Balance sheet with amount of depreciation,though it is not charged to P/L.

OR

It is wrong to show the value of Truck in B/S

Please clarify.

Best Regards
Ritesh

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

28 October 2014 Depreciation is deemed to have been allowed as a deduction while computing income u/s 44AD or 44AE.

Accordingly you should show the truck at cost less depreciation.

Ritesh

Ritesh (Querist)

28 October 2014 Siddhartha Ji

Thanx for your prompt reply.So,as per your opinion Presumptive income(u/s44AE) to be credited to PL and the asset to be shown in the B/s.But I found some different opinion in this forum...that there is no need to take the asset in the B/s.

So which method should I follow?

Regards
Ritesh

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

19 November 2014 All assets are required to be shown in the Balance Sheet. So you should show the truck as an asset in the Balance Sheet.

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