Can Professional filing ITR-4 claim depreciation for bike?

Hi,

Can a Professional filing his ITR-4 claim depreciation for the bike which is on his name?

If yes, let's say a professional's income is 1,24,000. If he can claim depreciation of say Rs. 5,000 then his net income becomes 1,19,000. Is Section 44AA applicable for Net income or gross income?

Thanks!

Replies (12)

Yes he can claim if the same is being used by him for business purpose. for commuting from office to workplace etc.,

Can someone please confirm this?

Thanks!

Dear Dr. Jones,

Dhawal is rite, Depreciation can be claimed if used for profession....Further all running, maintenance, insurance charges, etc can also be claimed.

However just take care if the same vehicle is used for personal as well as professional purposes, because in such cases AO can dissallow the deduction to certain extent (say 20%/30% of depreciation n expenses) on account of personal use.

Thanks Amir.

What would be the answer for: Is Section 44AA applicable for Net income or gross income?

 

its on gross income but does not include the statutory taxes collected on sale if business and on fees if professional.

Thanks Dhawal!

Dear Doctor Jones,

Sec 44AA Speaks of 2 limits -

          Rs. 10 Lacs is for Turnover

          Rs. 1.20 Lacs is for Income.

 

Further Dhawal Bhai, I think taxes will remain included in the Turanover..........

Amir bhai does the section say anything is specific about this ?

Dear Dhawal,

if his income from business or profession exceeds 38[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds 39[ten lakh] rupees in any one of the three years immediately preceding the previous year; or

when the law does not deal anything in specific for the taxes then we can inteprete the law the way it is convenient to us. for 44AB we do that .. right ?

Dear Dhawal,

First, the use of words total/gross makes it clear that gross turnover is to be seen (nw it includes taxes as well)..

Secondly, Its not always what u said that if sumthing has not been said specificall then it will favour assessee...........

agreed sir ...

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