1)what is the basis of profit calculation in patnership firm??
2)is salary to patner allowed as expenses in it??
3 ) is profit earned by a patner is again taxed in his individual income tax return?
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basis of profit calculation in patnership firm
Replies (8)
first 3 lac profit of the partnership salry would be 150000or 90% of profit whichever is higher
for remaining profit 60% of profit could be salary for more detail read section 40b
partner salary would be taxable in hand of partners
it
for remaining profit 60% of profit could be salary for more detail read section 40b
partner salary would be taxable in hand of partners
it
thank u
how much profit is calculated on turnover
rate of profit on turnover?
i heard 8 per on turnover
is it right
how much profit is calculated on turnover
rate of profit on turnover?
i heard 8 per on turnover
is it right
as per the provisions of section 44AD 8% of the turnover is taxable income when sales are made in cash as well and 6%when all receipts are through normal banking channel.
if you opt for 44 Ad then no deduction for salary to partners, interest on Capital is allowed to partnership firm.
if you opt for 44 Ad then no deduction for salary to partners, interest on Capital is allowed to partnership firm.
Abhishek I would correct myself here salary would be taxable in hand of partner but profit shere would be nontaxable
if you have opt 44Ad then u can't deduct any exp after taking profit 8% or more of your turnover
i am planning to form a patnership firm with my father having turnover of only 50 lakh per year ..
should i opt for 44Ad or 40b or anything else to save tax??
should i opt for 44Ad or 40b or anything else to save tax??
if your margin is below 8% in your business then you have to go for complete book maintain under section 44AA where you can claim all exp of your business and salary also
if you have more than 8 % profit and not interested to maintain complete books of accounting you can go for the 44 ad
for more detail you can reach me @ casahilthakral7 @ gmail.com
thank u sir
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