Rectification of return

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Shrigopal Bhaiya (Querist)
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08 May 2017 In case of partnership firm,belated return was filed for A.Y 15-16.Defective notice was received.The firm only received rental income of Rs. 144000 from its machinery and as a result PGBP aagya.Firm claimed expenses such as partners interest expenses and derpre.Now the firm filed its return under 44ad.Partners doesnt wish to pay tax.Defective notice was received as 44AD was applied and income was shown as zero and no 8% income shown.Now how to file its return so as to not pay tax ? One cannot show income from house property as expenses are claimed.One way out is to show loss under 44ad.Any other way out ?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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08 May 2017 Girstky mention exactly your income from various heads

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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09 May 2017 Check whether you have shown 8% of your gross receipts as income from business or profession u/s 44AD. For AY 15-16 you could claim interest on capital to partners out of 8% income. If all particulars and claim are correct and as per law you can file response to defective notice u/s 139(9) by stating that income is zero because out of 8%, partners interest on capital has been claimed and after claiming the same there is no income in the hands of the firm as interest on partners capital is a deductible expense for a firm.

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