Section 44ad
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 December 2015
Dear Experts,
Plz clarify my query...1) can A partnership firm opt section 44AD or not...2) if yes does the firm liable to maintain it's books of accounts...3) which expense can be claim as deduction in firm....
Plzzz reply.....
Plz clarify my query...1) can A partnership firm opt section 44AD or not...2) if yes does the firm liable to maintain it's books of accounts...3) which expense can be claim as deduction in firm....
Plzzz reply.....
Ankur Singhal
(Expert)
17 December 2015
The provisions of section 44AD are applicable to such resident assesses who is an Individual, 11indu Undivided Family and Partnership Firm but not Limited Liability Partnership Firm.
No need to maintain books of accounts
It should be noted that an assesses, being a partnership firm, can claim further deduction of remuneration and interest paid to its partners within the limit specified under section 40(b). In other words, in case of an assesses being a partnership firm, separate deduction from the net income computed as per presumptive taxation scheme in respect of remuneration and interest paid to its partners is allowed. Further, from income computed at the aforesaid rate, no dis allowance can be made under sections 40, 40A and 43B. Thus, in case of an assesses adopting the presumptive taxation scheme of section 44AD, no dis allowance under sections 40, 40A and 43B will apply.
No need to maintain books of accounts
It should be noted that an assesses, being a partnership firm, can claim further deduction of remuneration and interest paid to its partners within the limit specified under section 40(b). In other words, in case of an assesses being a partnership firm, separate deduction from the net income computed as per presumptive taxation scheme in respect of remuneration and interest paid to its partners is allowed. Further, from income computed at the aforesaid rate, no dis allowance can be made under sections 40, 40A and 43B. Thus, in case of an assesses adopting the presumptive taxation scheme of section 44AD, no dis allowance under sections 40, 40A and 43B will apply.
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