44AD calculation for firms

Hey, i have a query,

In case of a partnership firm,
Gross receipts = 20,00,000
Less: salary allowable u/s 40(b) = 1,00,000
Less: other exp= 18,00,000
NP= 1,00,000


Will profit percentage for 44ad will be 5% (100000/2000000 × 100),

Or after adding back salary, i.e. (200000 / 2000000 × 100) = 10%

Please clarify.
Replies (6)
As per sec 44AD no way for claim / book Remuneration and Interest on capital. And profit will shown 8% or above. If you will show less than 8 percentage then Tax Audit applicable...

As per sec 44AA You can book remuneration and interest. But, Profit will shown 8 percentage of above (after remuneration and interest). If you will show less than 8 percentage then Tax Audit applicable...

As per sec 44AB You can book remuneration and interest. Also you can show less than 8 percentage of Profit...
So as per 44AD, assessee needs to show minimum Rs. 1,60,000 / 1,20,000 in this case,
Right?
Yes... You are Right. 👍
@ raja p m in this case which form should be gone
You can file ITR 4 - U/s 44ad (without regular books of accounts)..... Otherwise You can file ITR 5 (with regular books of accounts)

Respected Sir

I purchased a bus during the FY 2018-2019 through bank loan. I have earned rental or playing or hire income from above vehicle. Please clarify whether the income from car rentals be treated as "Income from other sources" or "Business Income Under Section 44AD" or Income Under Section 44AE? 

I can deduct all expenses like loan interest, insurance, M V tax, depreciation, petrol, repairing, etc from gross rental income.

Read more at: https://www.caclubindia.com/experts/income-from-car-rentals-1053734.asp

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details