44AD in case of Partnership firm


Student CA Final

Is it advisable for a partnership firm to opt for presumptive taxation if it shows ad-hoc profit @ 6% or 8% as the case may be..

I raised this question because the firm is taxable @ 30% and may be having higher profits otherwise.

Thanx in advance
 
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KVO Merau Kutchh

6/8 % margin is over turnover for determination of PROFIT........

30% tax-ability is over profit so arrived is for calculation of TAX....

Both are different and hence, no contradiction!

 
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Student CA Final

If the actual earning of the firm is Rs 10L and the profit as per 44AD is Rs 5L, which profit should we consider..??
 
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Depends on the ITR which you are filing.
 
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