Firm got commission income, what is the procedure to file it

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2015 Dear all,

Mr X and Mr Y are partners in a firm

they got 1,79,000 commission on sale of POST PAID SIM Card (this is the only business)

they are not maintaining books of account

in deed: interest and remuneration is allowable as per IT ACT

please tell me
is it can be filed u/s 44AD

and

what is the tax amount, how to file it return and which form should be used

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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25 April 2015 Yes it can be filed u/s 44AD provided you show a minimum net profit of 8% of gross receipts of business in which all expenses deemed to have been provided. interest and rem. if within the limits of IT act than will be allowed as deduction to the firm and if any profit is left over after distribution of interest on capital and remuneration the same will be taxed @ 30%.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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25 April 2015 The return may be filed either manually or electronically and I think ITR-4S (sugam) should apply in your case.

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2015 Sir here firm got Commission income, so how can be return filed return U/s 44AD

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 April 2015 You are right. Return can not be filed U/s 44AD of commission earners.
.
ITR 5 will be applicable.
.
Show Interest on capital and balance as remuneration to Partners as per P. Deed.
.
Net Profit of the firm will be NIL.
.

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