44ad & partnership firm- inc<8% audit ?
This query is : Open
04 June 2012
Hello everyone,
suppose my client a firm has 200000 of turnover so 8% comes to 16000.
if it opts for 44AD then is audit mandatory because in 44AD it is mentioned that if income is <8% and income is more the maximum amount not chargeable to tax and for firms there is no limit for taxability of income ,
suppose my client a firm has 200000 of turnover so 8% comes to 16000.
if it opts for 44AD then is audit mandatory because in 44AD it is mentioned that if income is <8% and income is more the maximum amount not chargeable to tax and for firms there is no limit for taxability of income ,
04 June 2012
yes mandatory , but you can further reduce the profit by paying partner's remuneration and interest to partners,then I think tax payable would be less than tax audit fee
04 June 2012
1. If you show income less than Rs. 16,000 then tax audit is mandatory.
2. If you show income of Rs. 16,000 or more then tax audit is NOT mandatory.
3. Further, you can claim deduction of partner's remuneration from such income.
2. If you show income of Rs. 16,000 or more then tax audit is NOT mandatory.
3. Further, you can claim deduction of partner's remuneration from such income.
04 June 2012
there are chances of misusing section 44AD becuase to deduct higher remuneration one will inflate the book profit and reduce the tax liability.
04 June 2012
there are chances of misusing section 44AD becuase to deduct higher remuneration one will inflate the book profit and reduce the tax liability.
04 June 2012
there are chances of misusing section 44AD becuase to deduct higher remuneration one will inflate the book profit and reduce the tax liability.
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