banner_ad

Tax audit applicability

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 August 2019 Kindly guide me in this query.

While filing ITR for a partnership firm,
Total Sales – Rs. 25,00,000
Net Profit before interest and salary– Rs. 4,50,000
Interest on Partner’s Capital- Rs. 75,000 Salary to Partners- Rs. 250,000

Net Profit after Interest and Salary- Rs. 1,25,000

Criteria for 8% of turnover is net profit before interest & salary or after interest and salary ?

Kindly advice me on the same. So, since 1,25,000 is less than 8% , does it qualify for tax audit ?
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
19 August 2019 Opt 44AD and show 2,00,000 profit tax audit not applicable. Since 1,25,000 is less than 8%, it qualify for tax audit.
Profile Image

RAJA P M

Profile Image

RAJA P M (Expert)
19 August 2019 Yes... I agreed with Mr CA R Seetharaman Sir...

As per sec 44AD Partners can't claim Interest & remuneration. They must show profit 8% /(6%) or above. Otherwise tax audit will kick...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details