Section 44ad

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Jignesh Selarka (Querist)
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05 March 2012 If in partnership firm turnover is 30,00,000
and other income 3,00,000.
My Query is that u/s 44ad net profit should 8% of turnover i.e. 2,40,000 or 5,40,000 compulsory.

s v rajesh

s v rajesh (Expert)
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05 March 2012 Hi,

As Per Sec.44AD profits and gains of business on presumptive basis - 8% is compulsory.

For Other Income Rs.300000 is added to this i.e Rs.5.4L

You can reduce this with Chapter VI A Deductions and pay tax for the rest of the taxable income.

If your profit is Less than 8% means you can get it audited and declared even less than 8% income also.

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 March 2012 If the income of Rs.3,00,000/- related to other sources income i.e not for business then your Gross total income should be Rs.2,40,000+3,00,000 = Rs.5,40,000 other wise it also business income then Profit Should be 8% on Rs.33,00,000(30,00,000+3,00,000) is Rs.2,64,000/-
OM SAI SRI SAI JAI JAI SAI

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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05 March 2012 Income on presumptive basis u/s 44 AD is applicable for declaring income under the head business or profession only.

Your Income should be 540000 or more (if you are not opting for audit to declare income less than 8% on turnover)

CA PARTH SHAH

CA PARTH SHAH (Expert)
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05 March 2012 above experts are correct. your total income is 240000 + 300000

Prakash Kochar

Prakash Kochar (Expert)
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06 March 2012 Income from business u/s. 44AD will be 2,40,000/-i.e. 8% of turnover of sale, out of this you will be entitle to deduct interest @12% on capital of partners and remunaration to partners as per terms of partnership deed, the balance will be treated as net income from business.
Income of Rs. 300000/- from other sources will be in addition to above income calculated. Out of other sources income no deduction will be allowable u/s. 40(b)i.e. interest and remunaration to partners.
Or other alternative is audit.

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