According to sec. 44 AD or 44 AF.........will i have to show profit 8%, If i dont wanna to go for audit??
If i carry firm will i be able to get deduction of Partners Remuneration & Interst on partner capital ..
Plz guide me.
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44 ad n af
Replies (3)
yes partners remuneration & interest on capital allowable
Yes, audit is required if profits are claimed lower than 8/5%
Remuneration & interest on capital is allowed subject to limits
First of all 44AF section convert into 44AD, Now to show profit 8% is must, In case of Partnership firm Book Profit must be 8%, In the Profit and Loss Appropriation A/c there is Debit Item of Remuneration to parners and Interest on Capital. You can deduct Remuneration and Interest from Book Profit.
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