section 44 AF & ITR 5

ITR 4886 views 6 replies

Rohan

employee

45 Points Joined March 2009

An assessee ( firm ) engaged in retail trade with total turnover of Rs. 38,00,000 /= and remuneration to partner approx - 118,800 /= & Interest to partners - Rs. 25,000 /=

Is this computation right ?

Gross Profit ( 38,00,000 /= @ 5 % ) = 1,90,000

Less :- Remuneration & Interest 1,43,800

Net Profit( taxable ) 46,200

Is this right ? & how to fill up these details in ITR 5 - U/s.44 AF so as to reflect that the profit declared complies with the provisions of section 44AF and also the computational provisions of the I.T. Act?

ITR 5 - P/L A/c - No A/c Case - Column 52

( Gross receipts , Gross Profit , Expenses,Net Profit ) ----- and what about schedule BP ????

Replies (6)

PiyushAgrawal

Chartered acooutant in practice

575 Points Joined September 2008

Originally posted by :Rohan
"	An assessee ( firm ) engaged in retail trade with total turnover of Rs. 38,00,000 /= and remuneration to partner approx - 118,800 /= & Interest to partners - Rs. 25,000 /= Is this computation right ? Gross Profit ( 38,00,000 /= @ 5 % ) = 1,90,000 Less :- Remuneration & Interest 1,43,800 Net Profit( taxable ) 46,200 Is this right ? & how to fill up these details in ITR 5 - U/s.44 AF so as to reflect that the profit declared complies with the provisions of section 44AF and also the computational provisions of the I.T. Act? ITR 5 - P/L A/c - No A/c Case - Column 52 ( Gross receipts , Gross Profit , Expenses,Net Profit ) ----- and what about schedule BP ????	"

The intrest must be less than 12% P.A.

and assessee should get deduction of sec 40 (b) but remuneration should be calculated as follows::-

First 75000 Rs profit:--- 90% or 50000 whichever is more

next 75000 Rs profit ----- 60% of profit

on balance ---- 40 % profit

Note:- The remuneration calculated above must not greater than as provided by partnership deed

CA Sakshi

CA Practice

309 Points Joined December 2008

You can attach a sheet of computation of income with ITR - 5. Many times we have to attach TDS annexures, etc. So for your conveniency attach computation sheet showing in detail the calculation of income.

Rohan

employee

45 Points Joined March 2009

Thank you, very much ....

if u could just tell me that if the firm is having other income ( display income - 1500 /- ) & interest earned on loans 1,20,000 /=

and interest paid Rs.80,000 /=

when the firm is opting for section 44AF ....business income @ 5 % of gross turnover .. above income should be shown under income from
other sources .....

Computation of Total Income ------- For Firm ---------

Business Income ( 5 % of 38,00,000 /= ) 1,90,000

Less :- Remuneration 1,18,800

Less :- Interest to partners 25,000

-------------- 46,200

Other Income 1200

Interest earned 1,20,000.00

Less :- Int.Paid 80,000.00

----------------- 40,000

------------- 41,200

-----------

Total Taxable Income 87,400

Is this OK .... also ITR 5 - P/L A/c - No A/c Case - Column 52

Gross receipts = 38,00,000 /=

Gross Profit @ 5 % = 1,90,000 /=

Expenses = 1,43,800 /= ( remunertion + interest total )

Net Profit = 46,200 /=

or should the remuneration & Interest be entered in column no.30 ( any other amt.allowable as deduction ) of Schedule BP - ITR 5.

CA Sakshi

CA Practice

309 Points Joined December 2008

No need to be entered in Col. 30 as you are attaching your calculation sheet.

Raj

Accountant

26 Points Joined September 2008

If anyone shows Turnover Less than 40 Lakh and Business Income Calculate more than 5% (means 8%) is it allowed or NOT ?????

santosh J Pichare

Ass. Manager Accounts

33 Points Joined January 2010

plese tell me the taxability of FBT for p.y. 10-11 and A.Y. 11-12?

if it is withdrawn than what is the treatment of refreshment expenses received during office hours. Whether it is treated as income of employee under the head "Salary"