Sec44ad and 40b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2011 one firm has turnover of 200000.00(two lakhs)only as per sec 44ad minimum income shown as 8% i.e. 16000 from this remuneration to partner is 16000 so taxable income is nil so how to show remuneration to partners in ITR-5 and we have shown according to 44ad so no audit, no tax am i right? and where and how to show this in ITR-5.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 August 2011 Fill up clause 6 of part A-BS, clause 52 of of part A - P & L.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2011 but how to show profit is shown as per provision of sec 44ad and expenses include remuneration to partner as per sec 40b so there is no violation of 44ad and no audit is required

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 August 2011 Firm does not have any exemption limit. In your case if the profit is 16000 and you deduct the partners salary or interest then it will be a loss and you fill up the ITR accordingly with loss

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