Business firm

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SANTHOSHA KM (Querist)

16 March 2018 Sir,

Please help me, I have lot of confusion.
Sir what I am telling my business Firm (partners ship firm)

The total turnover 10,00,000 the declaration U/s. 44AD. Presumptive basis 8% Rs. 80,000/- Book Value
Next 1,50,000/- paid remuneration (correct or wrong) please explain,

And second (after book profit >1,50,000-80,000=-70000) it is loss my opinion

Loss on business audit will applicable, book profit 80000 or 70000 loss, clarify audit applicable yes or no (clarify)

* Remuneration calculate method
* consider profits of firm Audit profit or loss time

Thanks
Santhosh

Nikhil Kaushik

Nikhil Kaushik (Expert)

16 March 2018 the profit has to be computed assuming that the presumptive expenses include partner's salary. So you just need to show 80000 as presumptive profit and pay tax on it.

SANTHOSHA KM

SANTHOSHA KM (Querist)

16 March 2018 In case of loss Rs 80000 audit required or not. Auditing have taken book profit / before Remuneration,,

Remuneration calculation please

Nikhil Kaushik

Nikhil Kaushik (Expert)

17 March 2018 already answered above. The deduction of salary not allowed for presumptive taxation..

SANTHOSHA KM

SANTHOSHA KM (Querist)

17 March 2018 Thanks sir

In case of loss of firm (tax audit required)
Audit applicable net loss or book profit loss please mention section.

Computation
Turnover 10,00,000
Presimtive 8% 80,000
Less : remuneration 150000 (150000 - 80000= 70000 loss? Method correct.

Which section applicable (audit or no tax audit)

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