unabsorbed depreciation in case of U/s 44AE

HELLO RAGHU,

WHILE CALCULATING INCOME U/S 44AE ALL THE DEDUCTION UNDER SEC 30 TO 38 DEEMED TO HAVE BEEN ALLOWED INCLUDING DEPRECIATION AND UNABSORBED DEPRECIATION AND NO SEPERATE DEDUCTION REQUIRED.

PRESUMPTIVE INCOME COMPUTED UNDER SEC 44AE IS U'R TAXABLE INCOME U/S 44AE.

REGARDS,

MANOJ

The very purpose of coming under the purview of Section 44AE is to avoid maintaining accounts.  If you do maintain, then you are entitled to compute an income lower (or higher) than that in 44AE.  And you are entitled to set off unabsorbed depreciation and unabsorbed business loss against that profit.  Under Section 44AE, your income after allowing for ALL expenses is deemed to be the amount mentioned in that provision.

In short, maintain books - claim unabsorbed depreciation. No books - presumptive income under 44AE.