Calculation of profit for firms @8%
This query is : Open
Shaik Shair Ali
(Querist)
31 March 2021
Dear Sir,
For partnerships firm for audit u/s.44AB profit above 8% shall include interest & remuneration to partners or not.
Thanks in advance
For partnerships firm for audit u/s.44AB profit above 8% shall include interest & remuneration to partners or not.
Thanks in advance
CMA Poornima Madhava
(Expert)
31 March 2021
1) 8% is the minimum profit that one needs to declare u/s 44AD (if not willing to opt for audit). However, the profit can be declared even at a higher rate, as applicable.
2) Remuneration/interest to partners is an allowable deduction from (1) above.
2) Remuneration/interest to partners is an allowable deduction from (1) above.
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