Hi friends,
Please clarify my doubt with regard to amendments in finance act,2016. Is audit under section 44AB compulsory in case of firms declaring profits higher than 8% of turnover and having turnover less than 2 crores. If answer is no, clarify whether interest and remuneration given to partners is allowable as deduction under section 40(b). Please provide a quick reply with suitable examples and sections.
Thanks in advance
If your turnover is less than 2 Crores and your book profit (Actual) is more than 8% then you are eligible to declare your income U/s 44AD. Because 44AD consider on deemed profit(8%) and actual profit whichever is higher In that case you are not liable for audit.
As per Finance Act 2016 40(b) is not allowable after calculation of section 44AD.
| Originally posted by : PVS Sastry | ||
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Hi friends, Please clarify my doubt with regard to amendments in finance act,2016. Is audit under section 44AB compulsory in case of firms declaring profits higher than 8% of turnover and having turnover less than 2 crores. If answer is no, clarify whether interest and remuneration given to partners is allowable as deduction under section 40(b). Please provide a quick reply with suitable examples and sections. Thanks in advance |
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1) Turnover is less than 2 Cr
AND
2) Profit is above 8% of sales..
Yes, You have to do Audit under section 44AB.
Answer is Yes..2nd question need not to be discuss in your case.
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