Claiming of interest and remuneration

Hi

A firm (eligible for 44AD) is not opting for 44AD has income above 8%.(turnover 1000000 , profit 100000)

However, after interest and remuneration, it is a loss.[100000profit -12000interest -150000 remuneration=(62000)loss]

[Due to omitting of the proviso to section 44AD(2)  the salary and interest paid to its partners shall not be allowed to be deducted from the income computed under sub-section (1) of section 44AD.]

Will this loss be allowed? or will the firm be forced NOT to claim the interest and remuneration?

Replies (2)

I had already discussed this. You can go to my profile and check for "Stupid"s question".

Still...

Firm is not eligible for claiming that remunarretion or interest under 44AD.

In the case I have mentioned, the book profit of the firm is well above 8%. Can we claim interest and remuneration such that the net income of the firm is 8% exactly?

Kindly note that we are not opting for 44AD. (we will use ITR 3 not ITR 4 sugam). We want to avoid the situation where audit will be necessary due to income falling below 8%

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details