Section 44ad and remuneration to partners
This query is : Resolved
SUBHASH MISHRA
(Querist)
22 August 2018
Respected sir
As you know that as per provisions of section 44AD of the Income Tax Act, 1961, we have to show minimum 8% net income of the total gross receipts. In case of a partnership firm, Whether it is Book profit or Net profit ?
My question is that - In case of a partnership firm, whether this 8% net income should be treated after deduction remuneration to partners or prior to this deduction.
Suppose, in above query after deduction of remuneration, total income comes less than 8%, then whether the firm is needed for audit or not ?
Please guide ASAP.
As you know that as per provisions of section 44AD of the Income Tax Act, 1961, we have to show minimum 8% net income of the total gross receipts. In case of a partnership firm, Whether it is Book profit or Net profit ?
My question is that - In case of a partnership firm, whether this 8% net income should be treated after deduction remuneration to partners or prior to this deduction.
Suppose, in above query after deduction of remuneration, total income comes less than 8%, then whether the firm is needed for audit or not ?
Please guide ASAP.
CA R SEETHARAMAN
(Expert)
22 August 2018
8% profit to be declared after partners remuneration. Yes in the above case tax audit applicable.
SUBHASH MISHRA
(Querist)
23 August 2018
Sir, in which section it is clearly written about this. Please guide.
CA R SEETHARAMAN
(Expert)
23 August 2018
Read 44AB and 44AD........
SUBHASH MISHRA
(Querist)
23 August 2018
Thank you very much sir....
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