Sec 44ad of income tax act

It is writtten that if we opt for a higher income u/s 44AD,no deduction u/s 30 to 38 including depreciation and unabsorbed depreciation shall not be allowed as they are deemed to have been allowed.Therefore my question is that wheather depreciation as per books of accounts is a deductible expense while arriving the profit which is higher profit ,ie,more than 8%  while finding the tax or it should be added back as it is told in the section that  no deduction u/s 30 to 38 including depreciation shal not be allowed.plz give me a reply with an example.

i want to know wheather depreciation which is a normal business expenditure is allowable u/s 44AD while arriving profit in profit and loss account.plz reply with an example

Replies (1)
Originally posted by : Bindu

It is writtten that if we opt for a higher income u/s 44AD,no deduction u/s 30 to 38 including depreciation and unabsorbed depreciation shall not be allowed as they are deemed to have been allowed.Therefore my question is that wheather depreciation as per books of accounts is a deductible expense while arriving the profit which is higher profit ,ie,more than 8%  while finding the tax or it should be added back as it is told in the section that  no deduction u/s 30 to 38 including depreciation shal not be allowed.plz give me a reply with an example.

i want to know wheather depreciation which is a normal business expenditure is allowable u/s 44AD while arriving profit in profit and loss account.plz reply with an example


All deductions allowable under sections 30 to 38 shall be deemed to have been allowed
in full and no further deduction shall be allowed. However, in the case of a firm, salary
and interest would be allowed as deduction subject to the conditions and limits
prescribed under section 40(b).
 The written down value of any asset of such business shall be deemed to have been
calculated as if the assessee had claimed and had been actually allowed the deduction in
respect of depreciation for each of the relevant assessment years.

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