Section 44ad and remuneration to partners

This query is : Resolved

SUBHASH MISHRA (Querist)
Follow

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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

22 August 2018 8% profit to be declared after partners remuneration. Yes in the above case tax audit applicable.

SUBHASH MISHRA

SUBHASH MISHRA (Querist)
Follow

23 August 2018 Sir, in which section it is clearly written about this. Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

23 August 2018 Read 44AB and 44AD........

SUBHASH MISHRA

SUBHASH MISHRA (Querist)
Follow

23 August 2018 Thank you very much sir....

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Swarna Gurumurthy

manojkumarkk

ACCFIN SOLUTIONS

shanmukha sai

R NATARAJAN

Subscribe Now

Section 44ad and remuneration to partners

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Accountant

GST CONSULTANCY

CA Final

GST CONSULTANT

Manager- Finance and Compliance