Partners remuneration.....
This query is : Resolved
12 July 2021
Suppose ABC & Co is partnership firm which have turnover of 50 lacs in FY 2020-21. Firm want to opt presumptive taxation u/s 44AD. Suppose firm declare 8% of turnover as profit i.e. 400000. Now in this case how we calculate partners remuneration u/s 40(b).
12 July 2021
8% of profit i.e. 400000 considered after deducting partners remuneration.
12 July 2021
Thanks Rashmi mam.. but how to calculate maximum partner's remuneration
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12 July 2021
It will calculated on Book Profit after Interest.
90% of profit upto 3 lakh and
60% of profit on profit above 3 lakhs
12 July 2021
So what is book profit in this case.. whether 8 % deemed profit is book profit. Because in 44AD generally we not maintain books of account..
12 July 2021
so reverse calculate the remuneration.
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12 July 2021
Thank you Rashmi mam
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12 July 2021
Welcome.... It's my pleasure....😊
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13 July 2021
@ Query 1
Partnership firm opting 44AD is not eligible to claim 40(b) from assessment year 2017-18 and onwards vide the omission of provsio to section 44AD(2) by Finance Act,2016.
@ Query 2 & 3
Infructous in view of above.
Partnership firm opting 44AD is not eligible to claim 40(b) from assessment year 2017-18 and onwards vide the omission of provsio to section 44AD(2) by Finance Act,2016.
@ Query 2 & 3
Infructous in view of above.
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