Firm loss

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This query is : Resolved

shruti (Querist)

16 March 2014 PLEASE TELL ME
1.AUDIT REQUIREMENT
2.CAN I FILE LOSS RETURN IN MARCH 2014.

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MY PARTNERSHIP FIRM INCOME ======= 30000.00

FIRM CONTAIN A PROVISION THAT BOTH PARTNER SHALL BE ENTITLED FOR SALARY OF 10000 PER MONTH AND INTT 12% ON CAPITAL

POSITION IN BOOKS
=========================
RECEIPT 30000.00
lESS PARTNER SALARY 240000.00
lESS:- INTT 50000.00
===============
AS PER BOOKS LOSS 260000.00
===============

AS PER TAX POSITION
=====================
RECEIPT 30000.00
lESS INTT 50000.00
lESS-PARTNER SALARY 150000.00
===========
LESS IN RETURN 170000.00
=============

CONFUSION
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1. AM I RIGHT OR WRONG IN ABOVE WORK
2. I HEARD THAT IF I WANT TO FILE LOSS RETURN AS ABOVE THEN AUDIT IS MUST

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

17 March 2014 You said the firm has Income of Rs.30000 before Partner's interest and remuneration. If this Rs.30000 is equal to or more than 8% of the gross turnover/receipts of the firm's business then you not required to make tax audit and now you can file return of income with loss without tax audit, but you loose the option to carry forward of the loss because of return not filing u/s 139(1).

However please specify is your partnership firms is professional business or trading business, means specify nature of business(job of partnership firm) to give more clarification and explanation further.

OM SAI SRI SAI JAI JAI SAI

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