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).

Monika

Monika (Querist)
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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

Eswar Reddy S

Eswar Reddy S (Expert)
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22 July 2020 Sales 9.8lacs Profit :30K Liable for tax audit

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Eswar Reddy S

Eswar Reddy S (Expert)
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22 July 2020 You may opt for presumptive taxation by adopting 6% or 8% profit on sales

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Eswar Reddy S

Eswar Reddy S (Expert)
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22 July 2020 ITR Form applicable is ITR-5

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Monika

Monika (Querist)
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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 ?