All deductions for business expenses are deemed to have been allowed. Once profits are taxed at 50% of the gross receipts, the balance 50% is deemed to be allowed towards all the business expenses of the assessee.
meaning of above statement is this?
if I put 50% profit then no deducations can be claimed
if gross receipts is 5,00,000
presumtive income will be 2,50,000?
The maximum deduction is limited to Rs 10,000. If your interest income is less than Rs 10,000, the entire interest income will be your deduction. If your interest income is more than Rs 10,000, your deduction shall be limited to Rs 10,000. (You have to consider your total interest income from all banks where you have accounts).
Show your bank/FD interest as income from other sources and claim deduction of 10,000 under 80TTA.