Rebate u/s 87A with 44AD

Page no : 2

Sagar padhi (Articled Assistant) (69 Points)
Replied 07 October 2017

Can rebate be used if assess opt for 44AD .....

Eg.1...1 crore turnover ...so u/s 44AD 8% profit is declared i.e. Rs. 800000 so here Rebate cant be used although it is under 44AD

Eg.2...5500000 Turnover ...so now u/s 44AD 8% profit is declared i.e.440000 ....Now my query is it is below 500000 that is 440000 now rebate can be used u/s 87A ?

Any body plz solve these query .please

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RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 07 October 2017

Dear Sagar Padhi.,
Also you get answer from Our great Expert Mr Dhirajlal Rambhia Sir..... As follow...

( Dhirajlal Rambhia 07 October 2017

Correct for AY 2017-18.

(assuming gross taxable income of Resident Individual below 5 lakhs))

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 07 October 2017

Correct for AY 2017-2018 means.,
U/s 87A Rs. 5000 allowed AY 17-18 (FY 16-17)....
In previous year it's just 2000 only..
In C/FY it's 2500* only....

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Sagar padhi (Articled Assistant) (69 Points)
Replied 07 October 2017

You are not getting the question sir...i know the limits...amounts....

I just want to know can I use rebate when i use 44AD...thats all sir

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 07 October 2017

Dear,
Also getting the same in first reply.

Yes we can avail the benefit if "RESIDENTIAL INDIVIDUAL"

See the first reply from Mr Dhirajlal Rambhia Sir...

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160960 Points)
Replied 07 October 2017

Originally posted by : Sagar padhi
	You are not getting the question sir...i know the limits...amounts....I just want to know can I use rebate when i use 44AD...thats all sir

Yes, you can avail rebate u/s. 87A when the income assessed under sec. 44AD (simultaneously)

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160960 Points)
Replied 07 October 2017


	Sir, Please one more question... As of above way I stand as following... (In CAs we touch 44ad)1. Show the profit 8% / 6%2. Don't be show less than above. If less than 44AB applicable. 3. In case we show loss then we can use 44ad.4. If show it loss and base 44AA then 44AB applicable.....5. No need books of accounts if show loss sec 44ad.... So,I use above said points in that accounts... Am I Right Sir...?Please correct me if I am wrong...!!!

Am I Right Sir...?.............

Yes. technically right....... drafting can be improved.....

Also these applicable to partnership firm.

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RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 07 October 2017

Thank You Sir.,
Sorry Sir...
My English very bad... I'm not fluent. So, I'm not ask/give proper wordings....

How I'm understanding above my case with your reply and Solving..... As

1. If we file u/s 44ad... We show only above 8/6 percentage.. If it's less then 44AB applicable...
2. We can show loss u/s 44ad. No need books of accounts.
3. In case we show the profit Rs. 1. Also 44ab is attracted...

1 Like

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 07 October 2017

Dear Dhirajlal Sir.,

Thank you for the replying and Given Exact solutions and also noted the Sections...

I have one question sir.,

What is the exact meaning for "technically right....... drafting can be improved...???

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160960 Points)
Replied 07 October 2017


	My English very bad... I'm not fluent. So, I'm not ask/give proper wordings.... How I'm understanding above my case with your reply and Solving..... As1. If we file u/s 44ad... We show only above 8/6 percentage.. If it's less then 44AB applicable... 2. We can show loss u/s 44ad. No need books of accounts.3. In case we show the profit Rs. 1. Also 44ab is attracted...

Dear, Your english is not very bad......... there are many who are still learning........ and I have noted your improvement......... So, no need to degrade own self....... But it was not as per text book............. finally you have rectified to great level. .........Main thing is understanding the principle, which you have cleared, but note that this conditions will be applicable only for partnership firm.

......... Great......... Good luck..........

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 07 October 2017

Thank you very much My Dear Sir.... 🙏🙏🙏🙏🙏😊😊😊

2 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160960 Points)
Replied 07 October 2017

Dear S. Elavarasi,

" What is the exact meaning for "technically right....... drafting can be improved...??? "

Basic or main principle is clear in mind...... but not properly represented (may be as per law/section or books or other experts)........ So, there can be/needs some improvement.

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