Section 44AD applicability for partnership firm

Save Share

This query is : Resolved

Quick Summary

A partnership firm that hasn't previously used Section 44AD can opt for it in FY 2022-23 if its turnover is under £2 crore, even if it had a tax audit in FY 2021-22. This scheme offers relief to eligible small businesses, provided they meet certain conditions and are not involved in specific excluded business types like agency or commission work.

jyotiba

jyotiba (Querist)

25 October 2023 A partnership firm, which has never opted for Section 44AD before, and had a tax audit for FY 2021-22, can opt for Section 44AD for FY 2022-23 if its turnover is below 2 Crore

RAJA P M

RAJA P M (Expert)

25 October 2023 Yes, if eligible business...

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

15 January 2024 Section 44AD - It is designed to give relief to small taxpayers being resident individuals, resident HUF, and resident partnership firms (not LLP) engaged in any business who have not claimed deductions u/s 10A/10AA/10B/10BA or 80HH to 80RRB for the relevant year, but does not include the following businesses:

Business of plying, hiring, or leasing of goods carriages referred to in section 44AE;
A person who is carrying on any agency business;
A person who is earning income in the nature of commission or brokerage;
A person who is engaged in any profession as prescribed u/s 44AA (1).

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