Sec 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2014 Dear Sir,

I have doubt about sec U/s 44AD. please, clarify me.

This is a Situation:

Mr.X Working partner in a Firm. He received Remuneration of Rs.90,000 from the firm. but, the Firm goes to opt filled It return Under 44AD. Such case , Firm Gross Receipts Rs.2,50,000/. they arrived 8% of Gross Receipts amount of Rs.20,000/- As per 40(b) book profit computation maximum allowable remuneration Rs.17,000/-. In my doubt whether Mr.x Offered as Income amount of Rs.17,000/- or Rs.90,000/- for his Individual IT Computation. In case he offered as Rs.17,000/- only. Then, who will pay Tax for remaining portion of Rs.73,000/- and how it will attract to tax?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 March 2014 he needs to pay tax on 90000. the application of section 40 only limits the allowable remuneration.

Since the partner has received 90000, the taxability is on the whole of it. Disallowance in the firm doesnt mean reduction in remuneration already standing to his credit

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