Hi! As per new section 44AD, Individuals, HUF & partnership firm is covered u/s 44AD.
My 1st query is: whether letting out a warehouse by a partnership firm is covered under the definition of business or not.
My 2nd query is: whether the firm can claim the deduction of salary and interest paid to the partners out of 8% profit. Example: Gross Receipt is 20 lakh. Firm declares profit @ 15% on presumptive basis without maintaining books of accounts, i.e., Rs. 3 Lac. Now, whether the firm can deduct the salary and interest paid to the partners of Rs. 3 Lac. It is given in the act that a firm can claim the normal deduction of salary and interest to partners u/s 40(b) besides the deduction u/s 30 to 38 which are pressumed to be fully allowed.
My 3rd query is: If the answer to the 2nd query is positive, i.e., the firm can claim salary and interest paid to the partners out of 8% profit, then how is it to be shown in ITR 5. I observe that in ITR 5, In the schedule of BP, there is no column of salary and interest paid to the partners after profit u/s 44AD.
My 4th query is: The firm had no idea regarding the new provision and filed its ITR after maintaining books of accounts and shows the profit less than 8%. The ITR is filled manually on, say, 18th October, i.e., after due date. Now, whether the firm has to revise its ITR after let the accounts audited by a CA according to the section 44AD. If yes, then due date has passed. But the due date for the person of whom tax audited is conducted is 30th September and the firm is required to send the ITR online after signing it digitally. Can the firm revise the ITR as due date in this case will be 30the September which is still not passed.
My 5th query is: The firm originally filed its ITR manually. When I tried to revise the ITR online with digital signature, the Original Acknowledgement no. of ITR is not accepted in the online form and it will be deemed as Original ITR which is not correct. Now what to do? How can the firm revised and send its ITR online.
Kindly reply of all the queries with utmost care.
Thanks & Regards.
Vineet Rathi
CAclubindia
