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
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Subscription paid to foreign customer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
