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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
