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 ?
CAclubindia
