Tax working u/s 44ad of partnership firm

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Ankit (Querist)

16 July 2012 Sales Turn Over Rs. 28 92 700
Profit After Partners Interest & Remuneration Rs. 311254 (Presumptive) (10.76%)

Interest As Per Book 10020 (As Per Deed and Act 12%)
partners Salary As Per Book Rs.630000

I want to know the working of tax payable under presumptive tax method and tax amount payable by firm

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 July 2012 In the current situation:

A. Profit after Interest & Salary 311254
B. Add : Salary 630000
C. Book Profit =911254
D. Allowable Remuneration = 636752
90% Of the First 300000 BP= 270000
60% of the Balance 611254 = 366752
E. As the firm has provided Remuneration of Rs 600000/ only its Taxable Income is
Book Profit-Allowable Remuneration= 911254-630000=311254.
F. Tax on 311250 @ 30.9% =96176 or say 96180.
......
On Presumptive basis you can show Income @ 8% of 2892700/- Which is 231416
Deduct Interest 10020
--------
Book Profit 221416
Less: Remuneration 90% of BP 199274
Net Taxable Income 22142.
.

Ankit

Ankit (Querist)

17 July 2012 Thank You Sir For Briefly Narrating the Point . Further I Have Point That In Presumption Method I Follow, than How much i should Show interest and Remuneration in partners Returns . Should i Shown Remuneration Rs. 630000 in Individual Partner Return. or Rs 199274.