Sec 44ad
This query is : Resolved
CA Krishna Chaitanya M
(Querist)
03 July 2012
if one of my client partnership firm pay tax on income (calculated @ 8% on tournover) as per sec 44AD after applying partners remmuneration, as per books actually there is less profit , on which tax is payable, but to avoid audit burden they choose for sec 44AD, AS it is continuing firm from last ten years, how balances are carrie forward to next year in books of accounts, i mean is it necessary to adjust books to show profit @ 8% on tournover, as per books there is no such higher profit, how capital accounts and other opening balances are carryforward to next year.
As per sec 44AD, it is not necessary to maintain books of accounts for particular year, but in next year how opening balances of partner's capitals and other balances are appear in books of accounts
As per sec 44AD, it is not necessary to maintain books of accounts for particular year, but in next year how opening balances of partner's capitals and other balances are appear in books of accounts
04 July 2012
You have to understand that Income Tax Act does NOT govern books of accounts.
Treatment under Income Tax Act and accounting records may be different.
Section 44AD is a deeming section. It does not require books of accounts to be adjusted to match the income declared.
You will prepare books of accounts normally and carry forward the balances as per books of accounts.
Treatment under Income Tax Act and accounting records may be different.
Section 44AD is a deeming section. It does not require books of accounts to be adjusted to match the income declared.
You will prepare books of accounts normally and carry forward the balances as per books of accounts.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- GST input credit on commercial property
- Nursery business
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- Import Order Cancelled.
- IMS (import of goods) ITC related
- Royalty payments to the Mining Department for procurement of murum - GST input
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
