Partnership firm-tax audit applicable ?
This query is : Resolved
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 ?
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 ?
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.
But if you declare deemed income 6/8% (around 1.75L) under sec. 44AD, no tax audit.
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