How to claim depreciation in 44ad?

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Deal Cadet
Musky

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.

  1. How do I calculate depreciation? 
  2. 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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Pls get an expert to file your returns. There are so many things we should not be doing . Penny wise pound foolish ... So many clauses in Income tax act. Common people will make some mistakes in filing ITR 3 and 4. Better leave it to experts. 
Deal Lieutenant Deal Lieutenant
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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

Deal Cadet Deal Cadet
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I calculated depreciation on pro rata basis for number of days I had those device. Just seeking suggestions on it.

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Deal Cadet Deal Cadet
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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

Deal Cadet Deal Cadet
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In 44ad 8% or 6% is minimum what we can show, but if we have more income we need to show it. Since its business income, so planning for deducting expense directly from the income.
Deal Cadet Deal Cadet
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if wanted to claim expense, then have to shift from 44ad to normal provisions which requires audit from ca in practice

Deal Cadet Deal Cadet
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not just that once 44ad opted, it should be continued for 3 years continuosly otherwise again have to get report from Ca
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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

Benevolent Benevolent
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i dont think u can claim/show depriciation in 44ad

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