Partnership firm
This query is : Resolved
06 July 2014
A firm has assets registered in the name of partners, purchased from firm funds and claim depreciation on the same.It earns 2 lacs rental income which is shown every year as income from house property. Other Gross income receipts yearly 45000 approx.
Query:
1.Other Income is charged u/s 44d and determined accordingly. Can Rental income not be clubbed with it and charged u/s 44AD.
2.Asset cannot be registered in name of firm, is argued by the partners.One asset transferred by partners by book entry and other purchased out of firm funds.
3.Should firm continue to charge it under income from house property ?
4.Firm do not maintain books of accounts.
Since depreciation has been claimed by firm , what is the way out ?
Any suggestion?How can the errors be rectified?
Query:
1.Other Income is charged u/s 44d and determined accordingly. Can Rental income not be clubbed with it and charged u/s 44AD.
2.Asset cannot be registered in name of firm, is argued by the partners.One asset transferred by partners by book entry and other purchased out of firm funds.
3.Should firm continue to charge it under income from house property ?
4.Firm do not maintain books of accounts.
Since depreciation has been claimed by firm , what is the way out ?
Any suggestion?How can the errors be rectified?
06 July 2014
1)Rental income is Chargeable to tax under head income from house property head only
.
.
2)If turnover exceeds 1 crore mandatory to maintain books of accounts
.
.
if turnover is less than 1 crore can offer income under section 44AD showing atleast 8% of profit on turnover
.
.
.
cant get depreciation if u offer income under 44AD
.
.
2)If turnover exceeds 1 crore mandatory to maintain books of accounts
.
.
if turnover is less than 1 crore can offer income under section 44AD showing atleast 8% of profit on turnover
.
.
.
cant get depreciation if u offer income under 44AD
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