INTERVIEW QUESTIONS INCOME TAX PRESUMPTIVE TAXATION FOR BUSINESSES DETAILS

Question: While computing income as per the provisions of section 44ADA, separate deduction on account of depreciation is available.

(a) True (b) False

Answer: Correct answer : (b)
Justification of correct answer :
A person who adopts the presumptive taxation scheme is deemed to have claimed all deduction of expenses. Any further claim of deduction is not allowed after declaring profit @ 50%.

While computing income as per the provisions of section 44ADA, separate deduction on account of depreciation is not available. However, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32 is claimed and has been actually allowed.

Thus, the statement given in the question is false and hence, option (b) is the correct option.

Correct answer : (b)
Justification of correct answer :
A person who adopts the presumptive taxation scheme is deemed to have claimed all deduction of expenses. Any further claim of deduction is not allowed after declaring profit @ 50%.

While computing income as per the provisions of section 44ADA, separate deduction on account of depreciation is not available. However, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32 is claimed and has been actually allowed.

Thus, the statement given in the question is false and hence, option (b) is the correct option. Source: CoolInterview.com

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