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
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