Mact- help sought please
Gaurav
(Querist) 18 January 2012
This query is : Resolved
Respected Sir,
This is with respect to my father's MACT case. He was the sole bread earner and post accident had unfortunately had become mentally challenged.
I have two parts to my question.
Part A: Treatment of Depreciation while computing Income for Sole Proprietor:
My father was a sole proprietor. He recently passed away.
His income was nearly 4.5 Lakhs. He however claimed nearly 3 Lakhs as depreciation.
Thus, his Profit before Depreciation was 4.5 Lakhs
while Profit After Depreciation was 1.5 Lakhs.
Which amount would be taken as amount for compensation case. Please guide sir.
Per my understanding, depreciation is a non-cash expense and is similar to say standard deduction which is allowed for Tax computation.
Thus, Profit before depreciation should be taken into account.
Deepak Nair
(Expert) 18 January 2012
Repeated query.
Please refer to the earlier query.
Raj Kumar Makkad
(Expert) 19 January 2012
You should claim better claim irrespective of provisions of income tax as those provisions are not applicable while deciding MACT claims. You should put maximum claim which you can.
