09 August 2012
A partnership firm having turnover of Rs40 lacs and book profit of 1.5 lacs. However i want to show profit u/s 44AD @ 8% i.e. Rs3.2 lacs. In this on what amount will remuneration to partners u/s 40b will be calculated? Note: Partnership deed provides for remuneration to be calculated as per provision of sec 40b
11 August 2012
Income u/s. 44AD will be 320000/- @8% of 40lacs. Out of this interest and remuneration as authorised by partnership deed will be allowed u/s. 40(b)and balance if any will be liable for tax in hand of firm.