I am e-filling retrun for partnership firm for A Y 10-11, wherein i have opted for presumptive u/s 44af details as mentioned below
total turnover : 2080000
5% of above : 104000 (Deemed Gross Profit)
Interest on partners capital amount s to Rs. 106000
So now do i have to reduce interest on partner capital to amount equal to deemed profit or keep it as it is and show the loss, also in above case do i have to show partner remuneration ?
19 August 2010
from the assessment year 10-11 , evenif there is a loss remuneration can be allowable up to 150000 . For interest part no need to reduce . book the loss and carry forward for set off in the next year. other expert views are also solicited.
19 August 2010
In addition to above post in A. Y. 2010 - 11 remuneration upto Rs. 150,000/- can be paid to partners subject to the same being updated in the partnership deed. If the same has not been updated remuneration allowable as per old rates or the rates mentioned in the deed only.
So loss would be restricted by the amount of remuneration mentioned in the deed.
CAclubindia
