Partnership firm-tax audit applicable ?

This query is : Resolved

Rahul (Querist)
Follow

18 August 2019 Kindly guide me in this query.

While filing ITR for a partnership firm,

Total Sales – Rs. 25,00,000
Net Profit before interest and salary– Rs. 4,50,000

Interest on Partner’s Capital- Rs. 75,000
Salary to Partners- Rs. 250,000

Net Profit after Interest and Salary- Rs. 1,25,000

Criteria for 8% of turnover is net profit before interest & salary or after interest and salary ?

Kindly advice me on the same.

So, since 1,25,000 is less than 8% , does it qualify for tax audit ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

26 September 2021 If you declare Rs. 1.25 Lakhs as books maintained, tax audit applicable.
But if you declare deemed income 6/8% (around 1.75L) under sec. 44AD, no tax audit.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok