banner_ad

Applicability of section 44ad

508 views 1 replies

A partnership firm has following items credited in its profit and loss account:

1. Interest earned on fixed deposit - Rs. 50 Thousand

2. Expenses claimed in previous year written back: 30 Lakh

3. Insurance reciepts: 2 Lakh

Total credits in profit and loss account : 32.5 Lakh

Revenue from its primary business is Nil.

Query 1: Is the firm required to under take the audit u/s 44AB if it is having net loss during the year.

Query 2: If firm like to declare income on presumptive basis than what is the amount of profit u/s 44AD.

Replies (1)
1) Audit is not compulsory. 2) presumptive income would be 8% of 32 lakhs i.e. 2.56 lakhs and 50k would be other source income.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details