Dear All, I wanted to know, as a proprietor of my printing business, I had created FD in current account.
I had taken OD on that FD. On 26AS , my entire interest earned is shown while I had paid interest, nearly 50% to bank on the SAME OD. In tax calculation of my business income, I had decided to go for presumptive scheme for Fin Y 16-17 which came to 6% on my turn over of 1 cr+= Rs 6 lakh. Now my FD interest shows Rs 2 lakh received in current account (cumulative) but I have paid almost Rs 1 lakh on OD on the same FD. Can I include my interest income as part of my Total income as a proprietor ? i.e. when presumptive income is declared Rs 6 lakh (6% on sales) , will it be treated as included in profit since it is from my same proprietors account ?
If it has to be treated as separate income , is there any such provision where I can show the actual net interest earned after deducting the interest paid on OD of the same FD ? I can produce bank's letter with charges.
Thanks , Regards , Himanshu
CAclubindia
