Salary to partners and 44ad
This query is : Open
26 April 2018
Dear Expert
a Partnership Firm has turnover of 20lakh. Profit before salary to partners Rs 2,00,000 ( 10%). after claiming deduction of salary, Rs 50000 ( 2.5% ). Firm don't want to opt for 44AD and regular books are maintained. My Q is can we file return without TAX AUDIT, Maintaining P&L Balance sheet and declaring less than 8% profit by claiming deduction of salary ?
Or it is compulsory to do tax audit if taxable profit is less than 8%
Kindly guide
a Partnership Firm has turnover of 20lakh. Profit before salary to partners Rs 2,00,000 ( 10%). after claiming deduction of salary, Rs 50000 ( 2.5% ). Firm don't want to opt for 44AD and regular books are maintained. My Q is can we file return without TAX AUDIT, Maintaining P&L Balance sheet and declaring less than 8% profit by claiming deduction of salary ?
Or it is compulsory to do tax audit if taxable profit is less than 8%
Kindly guide
CA R SEETHARAMAN
(Expert)
26 April 2018
Yes it is compulsory to do tax audit if taxable profit is less than 8% for firms.
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