How to claim depreciation in 44ad?
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I have some freelancing 44d income. I bought laptop and smartphone and planning to claim expense for those? Got to know that it should be treated as depreciation.
- How do I calculate depreciation?
- Do I need to subtract it and fill remaining value in income or show them in depreciation column?
Confused. Any expert.
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Wait to forms of AY24-25 FY23-24 to get uploaded at IT website. Then only you have to file return till 31 july 2024. Financial year not yet over
I calculated depreciation on pro rata basis for number of days I had those device. Just seeking suggestions on it.
as you said its 44ad, no need to do all that stuff. just show 8% or 6% as the case may be as profits and file the returns
if wanted to claim expense, then have to shift from 44ad to normal provisions which requires audit from ca in practice
If you're opting for 44ad, you can not claim expenses seperately. All you have to do is determine your turnover or gross receipts for the year, determine your profits by deducting all your expenses.
And then if your profit is less than 8% of your turnover then you have to show it atleast 8% and if your profit is more than 8% you free to show that higher amount as profit.
Next, your profit along with all your incomes other than business income and your deduactions(80c 80d etc) is checked for tax liabilities as per slab rates
i dont think u can claim/show depriciation in 44ad
@third.i.financial.advisors @HasdaChehra