SEO Sai Gr. Hosp.
210402 Points
Joined July 2016
" I think As per this calculation incometax department will say me to pay tax on 5.2 lac because depreciation is not allowed under 44AD. Kindly solve my problem."
Under section 44AD, when you have already declared profits 8% or more (for any eligible business), department cannot ask you for more tax (for the said business), nor ask for any books of accounts. Under the section it is presumed that the depreciation has already been adjusted in the declared profits. And your WDV of assets has been reduced upto the effect of allowable depreciation under IT provision.