Comment on Taxation Simplified

Pro, For your queries:

1. ITR 4 is what you need to use. ITR 4S is what is introduced this year for preemptive taxation for people who don’t come under audit and from the following sectors: Transport, construction contractors, small retail shops. You as a trader still need to use ITR4.

2. Yes you can show whatever is the cost for your trading as a business expense. If you are using an entire room for trading, there is a cost for keeping that room, so yes that much of the rent could be an expense.

3. There is no limit to the expense, as long as it is related to your business of trading you can claim as an expense.

4. Typically how depreciation for computers is calculated is this. Assume you spend Rs 90k on a laptop, the first year you can claim 60% of this as depreciation that is 54k. 2nd year, you can claim depreciation 60% of (90k – 54k) which is 21600 , 3rd year you can claim depreciation 60% of ( 90k -( 54 + 21.6)) = Rs 8600.. You cannot go back and claim for the first 2 years now..

5. Yes of course you show the cost of technical software and workshops as a business expense..

Hope this clarifies

Cheers,

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