Section 44AD

Save Share

This query is : Resolved

Quick Summary

A partnership firm with a turnover of Rs. 5.50 Lakh and a net loss of Rs. 0.25 Lakh is seeking advice on whether they can file their Income Tax Return (ITR) under Section 44AD. While Section 44AD is generally available to partnership firms, individuals, and HUFs (but not LLPs), filing under this section might result in paying tax on 8% of the turnover, even with a loss. It's recommended to consider filing under normal circumstances using ITR-3 instead.

shoeb parwaiz

shoeb parwaiz (Querist)
Follow

25 August 2020 Dear All,

Partnership Firm has turnover of Rs.5.50 Lakh and the net loss is Rs. 0.25 Lakh. Can ITR be filed u/s 44AD?

Looking for your valuable advice.

Thanks & Regards

Shoeb

CA Ankith Jain

CA Ankith Jain (Expert)
Follow

26 August 2020 No, don't file under 44AD, you may end up paying tax on 8% of turnover. You could file under normal circumstances i.e ITR-3. For any queries, you could contact at caankithjain@gmail.com.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

31 August 2020 The provisions of section 44AD can be adopted by such resident assessee who is an Individual, Hindu Undivided Family and Partnership Firm but not Limited Liability Partnership Firm. There is no restriction on adopting the provisions of section 44AD by both, a partnership firm as well as the partners.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now