44ada presumptive taxation for specified professionals

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Arunkumar Yemula (Querist)
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23 March 2019 Dear Sir/Madam,

My Query....

A Partnership firm with Engineers opting for Presumptive Taxation u/s 44ADA. Can Partners of the firm in their individual capacity also opt for Presumptive Taxation u/s 44ADA as Partners remuneration from firm is taxable as Business/Profession receipts in the hands of Partners.

Thanks in Advance

Arun Kumar Yemula

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 March 2019 As partnership firm opted for 44ADA. Any remuneration and interest received from the firm is exempt from tax. Hence partner opting 44ADA out of remuneration from firm does not arise.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 March 2019 + A partnership firm engaged in specified profession can opt 44ADA.

+ The firm referred above can pay remuneration and interest to partners.

+ The payments referred above is taxable in the hands of partners.

+ Opting presumptive taxation on the above payment is a vexed issue since there
are for and against decisions for levying 271B on partners remuneration.

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