Re: [aurangabad_ca] Notice of 142 for return filed U/S 44AD
Sir,
I presume that in your querry, the department in Q.1 is " The contractee to whom deposit is given" and in Q.2 "The Income Tax Department."
1. Interest on refundable security deposit is "Business Income"
a. Deposit is given in the course of business
b. Deposit is given out of borrowed/ surplus funds arising in the course of business.
c. Deposit is given for the business.
d. Sec.44AD, rules "eight per cent of the gross receipts shall be deemed to be the income
from such business." The words used are "Gross Receipts." Hence, the eight per cent will
be on gross receipts i.e works contract bill + the interest income.
2. Interest on income tax refund is "Income from Other Sources".
Regards,
CA.Preety Parik
On 3/4/10, carc.sharma <CARC.SHARMA@yahoo.co.in > wrote:
Dear All
One of my client engaged in civil contract work filed his return for AY 2008-09 u/s 44AD showing his profit @ 8% of gross receipt now two questions are there
1 Interest accrued on Refundable security pledge in favour of department,whether it is part of business income includable in 8% or it is income from other sources.
2 Similarly interest on Income Tax Refund of deduction from department,is part of business income or income from other sources
Pl. share your experties
CA Rc Sharma
Siddharthnagar
9415037850
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AURANGABAD_CA is a Yahoo Group for the benefit of CA and other professional. It is especially meant for written discussion within group members and circulate the information among its members. The mail may contain such research/advice/opinion/information/fact provided by any member or moderator and every contain of the mail or information of yahoo is always subject to the Accuracy and of the description of facts.
The Aurangabad_CA , its moderator/owner do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant fact(s).
Considering all above facts m the transaction based on above mail may not complete without confirming proper statue/authority/person. Therefore any action/transaction taken on basis of this mail do not imply the accuracy or value . Further this Group's Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Yahoo Group.
For Seeking any Clarification you may mail only to Group Moderator on
girishkulk@gmail.com
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