Partners remuneration.....

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Gourav dewangan (Querist)
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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).

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 July 2021 8% of profit i.e. 400000 considered after deducting partners remuneration.

Gourav dewangan

Gourav dewangan (Querist)
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12 July 2021 Thanks Rashmi mam.. but how to calculate maximum partner's remuneration

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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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

Gourav dewangan

Gourav dewangan (Querist)
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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..

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 July 2021 so reverse calculate the remuneration.

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Gourav dewangan

Gourav dewangan (Querist)
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12 July 2021 Thank you Rashmi mam

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 July 2021 Welcome.... It's my pleasure....😊

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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