Partnership Firm

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This discussion clarifies tax obligations for a partnership firm with sales of approximately £9.8 Lakhs and a profit of £30K. It explores the eligibility for presumptive taxation under sections like 44AD, suggesting ITR-5 as the applicable form. The advice also covers scenarios involving small profits or losses, and the necessity of a tax audit if presumptive taxation isn't chosen and books of accounts aren't maintained as per Section 44AA(2).

22 July 2020 Hi, If our partnership firm has earned appx Rs.30 Thousand as profit for previous financial year with sales of 9.8 Lakhs. Can we pay tax on presumptive basis ? Also which ITR forms we need to file if we earn small profit or losses ? Other income is only income from savings in form of interest on FD.

Also in case of small profit or losses of partnership firm, if i don't opt for presumptive taxation and get my balance sheet certified by a Chartered Accountant , do i need to go for a tax Audit also?

Regard
Monika

22 July 2020 Sales 9.8lacs Profit :30K Liable for tax audit

22 July 2020 You may opt for presumptive taxation by adopting 6% or 8% profit on sales

22 July 2020 ITR Form applicable is ITR-5

23 July 2020 thank you sir for your response, sorry sir sales are 8.98 Lakhs and profit is around 30K, do i need to go for tax audit also if I don't opt for presumptive taxation ?

19 December 2021 Check applicability of sec. 44AA (2) of IT act for non maintenance of books of accounts. If eligible, no audit applicable.


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