Taxation partnership firm

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AVTAR SINGH (Querist)
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22 February 2014 A PF WAS FORMED IN DEC 2011.
ACTIVITY - MINERAL WATER PLANT
COMMERCIAL ACTIVITY NOT YET STARTED
NO ITR YET FILED
WANT TO FILE ITR FOR AY 2012-13 & 2013 -14 HAVING NO TRADING INCOME U/S 44AD

CAN IT BE FILED WITH PRESUMTIVE OTHER SOURCE OF INCOME SAY 5000/- WITHOUT CLAIMINING PARTNERS ALLOWANCES.

IF BUSINESS INCOME IS NOT SHOWN RETURN IS NOT ACCEPTED U/S 44AD CAN SCRAP SALES BE TREATED AS TURNOVER 1000/- APX.

DO OTHER INFORMATION NEED TO BE FILLED LIKE CAPITAL INVESTED IF RETURN IS FILED U/S 44 AD . INVESTMENT IN BUSINESS 60L APX. AND COMMERCIAL ACTIVITY TO START FROM 1ST APRIL 2014. IF SCRAP SALES IS ASSUMED AS BUSINESS TURNOVER WILL THE DEP BE ASSUMED TO HAVE TAKEN WEF ay 2011-12 ON ASSETS.PLS GUIDE SUITABLE COURSE OF ACTION FOR REGULARISING THE ITRS FOR AY 2012-13 AND 2013-14.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2014 1. Normally scrap sale should be reduced from the costs rather than including in turnover. So it may not make sense to offer the same under 44AD.

2. with regards to depreciation, if your offering income under 44AD, it is presumed that depreciation has been allowed, so no benefit on that either.

3. the best way shall be to offer the return under normal tax return showing the costs (less the scrap sale) as capex in progress and show any other receipts as other incomes.

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