Can in reg a/c partners interest and remuneration is allowed
This query is : Open
22 August 2017
in p'ship firm t/o is 50lakhs for f.y.2016-17 & as per amended provision if we will go for 44AD option than in such case partner's interest and remuneration is not allowed as deduction so... can we go for regular books of a/c (no audit case) and claim deduction of partner's remuneration & interest..
E.g. :- turnover = 50,00,000
minimum profit req to be shown = 4,00,000 (I.e 50,00,000 * 8% ) but we will take as Rs.7,00,000/-
therefore, profit before interest and remuneration = 7,00,0000
interest to partners = 3,00,000
remuneration of partner = 3,30,000
net taxable profit = 70,000
Now as per amended provision what is my taxable profit in regular books of a/c (no audit case) Rs.7,00,000 or Rs.70,000 ?
E.g. :- turnover = 50,00,000
minimum profit req to be shown = 4,00,000 (I.e 50,00,000 * 8% ) but we will take as Rs.7,00,000/-
therefore, profit before interest and remuneration = 7,00,0000
interest to partners = 3,00,000
remuneration of partner = 3,30,000
net taxable profit = 70,000
Now as per amended provision what is my taxable profit in regular books of a/c (no audit case) Rs.7,00,000 or Rs.70,000 ?
22 August 2017
Taxable profit is 70000 and liable for audit because profit is less than 8%
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