Partnership firm
This query is : Resolved
14 September 2019
my partnership firm has t.o 80 lakh
i aopt 44ad and i pay tax on 8% which is 6.4 lakh
but my actual profit after remunartin and intt to partner is 3.2 lakh which is 4% of tournover is i labile for tax audit
i aopt 44ad and i pay tax on 8% which is 6.4 lakh
but my actual profit after remunartin and intt to partner is 3.2 lakh which is 4% of tournover is i labile for tax audit
14 September 2019
if your turnover is less then 2cr and you show profit more then or equal to 8% before deduction of Salary & interest on capital.
if you come under above situation then Tax Audit is not required
As per section 44AD(2) remuneration and Interest on capital not allowed as deduction under section 40(b)
In simple term while opting for 44AD dedcution of Remuneration & interest on capital not allowed. you can pay same to partner but not claim as dedcution u/s 40(b)
hope your query solved
if you come under above situation then Tax Audit is not required
As per section 44AD(2) remuneration and Interest on capital not allowed as deduction under section 40(b)
In simple term while opting for 44AD dedcution of Remuneration & interest on capital not allowed. you can pay same to partner but not claim as dedcution u/s 40(b)
hope your query solved
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- Tds on commission charges
- Applicability of GST on Salary Reimbursement Component
- Dep. as per companies act
- Minimum tax payable to file Updated return
- UDIN ISSUE
- Need Professional Opinion AY 2012-13 Old Demand
- Salary from Qatar in Dollars in India
- New GST registration for new place of business.
- TDS on purchase of under construction property from a reseller
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
08 September 2026
Semi-Qualified Assitant
Subrahmanyam & Sivudu CA Firm
Hyderabad
CA Inter
View Details
Featured
12 September 2026
Assistant Manager - Finance & Compliance
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
CCI
Pro
CAclubindia
