Tax working u/s 44ad of partnership firm

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Ankit (Querist)
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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)
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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)
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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.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 July 2025 https://docs.google.com/document/d/18uCOlrocaqI-5eZgw1eUd6FkIWa3HJT2h4NlNDsR640/edit?usp=sharing

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