Donati (Self occupation) (81 Points)
10 April 2023Dear all,
This is with respect to Partners Remuneration calculation when Presumptive Taxation u/s 44AD is opted.
As per section 44AD the Net Profit is 6%. If Remuneration is calculated as per 40B then the balance will not tally.
Please help.
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3303 Points)
Replied 10 April 2023
As per the provisions of section 44AD, income will be computed on an estimated basis @ 8% of turnover or gross receipts of the eligible business for the previous year.
Donati
(Self occupation)
(81 Points)
Replied 10 April 2023
Dear Mr. Ramachary,
The query however is not about Presumptive taxation. It is about Calculation of Partners Remuneration when Presumptive Taxation has been opted.
NB: For availing benefit u/s 44AD (Presumptive Taxation), profits where income is credited digitally or through the bank will be considered as 6% as against 8% for cash receipts.
Thank you.
CAclubindia
