Regarding tax audit applicability u/s 44ab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 Assessee= Partnership firm
Turnover= 50,00,000
Profit before partners salary= 6,00,000 (12%)
Partners salary= 2,50,000
Profit after partners salary= 3,50,000 (7%)

Tax audit would be applicable to me if i opt to claim profit lower than 8% as in 44AD.
which profit among above shall be taken? In my view,as partners salary is taxable to them individually, Profit before partners salary shall be taken. Please clarify.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 March 2015 no it shall be profit after salary that needs to be taken so tax audit shall be applicable since it is below 8%

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 Further, please clarify that if i have above 8% of net profit, and i have opted to take presumed profit of 8%. can i get deduction of salary to partner in net profit of 8%

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 March 2015 yes u can deduct the salary to partner after taking 8% net profit as per sec 44AD(2).

refer this link for more clarification.

http://taxguru.in/income-tax/critical-analysis-section-44ad.html

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 are you 100% sure on your 1st answer i.e regarding applicability of Tax Audit??

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 March 2015 yes u can seek help of other professional in case of doubts

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 thank you Mr. Tushar :)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 March 2015 you are welcome friend............