Dear Mr. Dhirajlal Rambhia Sir.,     Originally posted by : Dhirajlal Rambhia
	Yes, to partners' capital accts.

It's means, Cannot take as Remuneration and Interest.... Only transfer to Capital account as per share then they can Draw the amount...... It's not partners Income...

In case A partner ll only deal this business then how he file his ITR (Individual)...

Sir.,

Also above view and sec (AY 17-18) Can't take Remuneration and Interest without "Tax Audit"....??!!

Originally posted by : S ELAVARASI
	In case A partner ll only deal this business then how he file his ITR (Individual)...

No taxable income in the hands of partners distributed from the firm.....

Originally posted by : S ELAVARASI
	Sir., Also above view and sec (AY 17-18) Can't take Remuneration and Interest without "Tax Audit"....??!!

Only when firm declare profits u/s. 44AD........

Otherwise the deduction u/s. 40(b) admissible......

My dear Dhirajlal Sir.,

I got notifications just 7min & 9min attending this forum by you...

But, No more reply here Sir...!!!

Site or pages getting held up (so many times)........... get them back only after gap of about 5 minutes or so.....

Thanks Dhiraj sir for your promt replies

Originally posted by : Dhirajlal Rambhia
	Site or pages getting held up (so many times)........... get them back only after gap of about 5 minutes or so.....

But,

Many more time i got the same.....By You Sir.....!!!!

Originally posted by : nvp
	Thanks Dhiraj sir for your promt replies

Dear Mr nvp.,

I'm also get many more Knowledge from Our GREAT My Dear Mr. Dhirajlal Rambhia Sir.....

Who is follw him in CCI they all are get Good experience and Improve their Knowledge...

Many More Thanks to Sir....

@ S ELAVARASI...........

" Also above view and sec (AY 17-18) Can't take Remuneration and Interest without "Tax Audit"....??!!"

Dear......... I have replied w.r.t. the specific query where the turnover of the firm is above 1 Cr; i.e. liable to tax audit u/s. 44AB...... but below 2 Crs.; so the tax audit not mandatory provided the income is assessed u/s. 44AD........

So, that is just one aspect to the query........... but to your question there is different aspect also.

PART B: Had the limit u/s. 44AB was also 2 Crs. then yes....... partners could draw salary & interest without tax audit........... but that is not possible as per law.

Part C: If the same partners had two partnership firms (may be same partners with same ownership ratio etc.; may be at same office address) but different firms with different PANS........ and if the turnover was divided ......so the data of  each firm would be something like following:

"Turnover - 90  lacs ....... each

Profit before Salary and Interest to Partners - 41.50 lacs (46 %) ........ about

Partner Interest - 11.00 lacs (just as per example)

Salary to partner  - 20.00 lacs (though as per section 40b, not allowable)

Net Profit after Salary and Interest to Partners - 10.50 lacs (12 %)"

In this case each firm can file return without TAX AUDIT.......... under normal assessment (with accounts maintained) conditions and paid tax over just 10.50 lakhs (*2)........

And partners would have declared the accumulated remunerations and interests derived from the firms in their individual ITRs.

Dear Sir.,

Thank you for the replies. i understood the laws after your all replies.

My Questions....

We pay he 8% related tax sec 44AD. Why not we can use the before profit amounts are Ourself...?

The Section allowed all expenditure but why banned remuneration and Interest...? That only my Big doubt......

"The Section allowed all expenditure but why banned remuneration and Interest...? That only my Big doubt.."

The section did not allow to deduct any expenditures......... and depreciation......... but were deemed to be taken care of by declaration of income under presumptive assessment at just 6 or 8%.

Our FM Arun Jaitley Ji vide finance bill 2016 even removed the interest and remunerations paid before taxation by Omissions of proviso to section 44AD(2).

Read the Amendment of section 44AD.

 In section 44AD of the Income-tax Act, with effect from the 1st day of April, 2017,—