44ad

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Yogesh (Querist)
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05 June 2017 I have query regarding 44 AD
Suppose if I have Turnover Rs 15 lac in case of HUF
Salary to 2 members is Rs 240000 p.a.(Total for both)
After such salary income is 3 lac (i.e. 20 % of T/o)
Now the question is
whether I can show the income in return Rs 3 Lac or it should be Rs. 3 Lac + 2.4 lac = 5.4 lac (as in case of 44 AD exp. are not allowed to deduct), Please guide.
Thank you
another question is:
In case of sole prop. if a person have purchased goods for Rs. 4 lac (M.R.P.) under an agreement to sale them (you can say is sale on approval basis) and after selling such goods the Prop. have to make payment to purchaser Rs. 3.6 lac.
Question is could I apply sec 44 AD or it would be treated as commission and not to apply 44 AD, what treatment is correct?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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05 June 2017 Income for HUF can be shown at Rs 3 Lac in return since restriction on not allowing remuneration applies in case of partnership firms u/s 44Ad and not in case of HUF.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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05 June 2017 Income for HUF can be shown at Rs 3 Lac in return since restriction on not allowing remuneration applies in case of partnership firms u/s 44Ad and not in case of HUF.

Yogesh

Yogesh (Querist)
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06 June 2017 Thanks and what about second question ?
But even if it is a firm the profit after salary is more than deemed profit,what is the problem for allowing salary in case of firm?

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