Rohit Gupta (M.Com / IPCC) (54 Points)
31 May 2017Hello all,
The assessee is Partnership Firm has filled normal return in last 2 years.
Q.1) Can the opt for presumptive taxation from this year onwards.
Q.2) What will be the book profit. - Turnover is 8,56,000/-, Partners Remuneration is Rs.1,50,000/- ( The firm has unabsorbed depreciation Rs.13560 and b/f losses Rs.11,000/-)
Thanks in advance
The profit & loss account should be prepared as per chapter IV-D of income tax act. As you are opting for 44AD, your net profit will be 8% of turnover. Unabsorbed depreciation and b/f losses would not affect book profit.
Your book profit: 8% of 8,56,000 = 68,480.
Remuneration allowable: 1,50,000 or 90% of 68,480, higher of these, = 1,50,000.
Your net loss would be: 68,480 – 1,50,000 = (81,520).
Sudiesh
(Audit Assistant)
(527 Points)
Replied 31 May 2017
chandrasekhar devarakonda
(advocate and tax practitioner )
(36 Points)
Replied 31 May 2017
akkuvali
(CA Practice )
(44 Points)
Replied 31 May 2017
CA Pradeep Garg
(CA & CS)
(1969 Points)
Replied 01 June 2017
what deduction from total income will be available to firm then? in case of individuals deduction of chapter VI A (80C to 80U) is available from income computed u/s 44AD. Is it same for firms also?
RAJA P M
("Do the Right Thing...!!!")
(127269 Points)
Replied 01 June 2017
| Originally posted by : akkuvali | ||
 |
I agree with Sudesh & Chandra Sekhar. The salary, remuneration, interest allowing provision has been removed from the Ay 2017-18 |  |
Dear Experts., (akkuvali, Chandra Sekhar & Sudesh),
When will be the Remunaration available for the Partners If not available remunaration u/s44AD...??
Please solve the Query...
Rishi
(article assistant)
(35 Points)
Replied 01 June 2017
CS Advocate Abhishek Goyal
(M Com FCS LLB M-AIMA )
(13531 Points)
Replied 01 June 2017
Section 44AD has lost its relevance so to speak as far as partnership firms are concerned. Previously firms were allowed deduction of interest on capital and partners remuneration separately out of 8% net profit but now from AY 17-18 no separate deduction will be allowed. It will be deemed to have been allowed under section 44AD out of net profit of 8%. Meaning thereby that partnership firms will have to pay tax on 8% of their turnover.
RAJA P M
("Do the Right Thing...!!!")
(127269 Points)
Replied 01 June 2017
Dear Abhishek Goyal.,
A partnership firm have books of accounts and their T/o Rs. 1.62Cr FY 2016-17.
They get remunaration...?
CS Advocate Abhishek Goyal
(M Com FCS LLB M-AIMA )
(13531 Points)
Replied 01 June 2017
| Originally posted by : RAJA P M | ||
|
Dear Abhishek Goyal., A partnership firm have books of accounts and their T/o Rs. 1.62Cr FY 2016-17. They get remunaration...? |
|
In this case both options will be there, for AY 2017-18 for turnover upto Rs 2 crore return may be filed u/s 44AD. But because of no separate deduction of partners remuneration and considering huge tax liability at 8% on turnover of Rs 1.62 crore this is ruled out.
You can accordingly get your accounts audited u/s 44AB and file a normal return (non presumptive) in which case you can claim remuneration as expenses.
RAJA P M
("Do the Right Thing...!!!")
(127269 Points)
Replied 01 June 2017
Dear Experts.,
Can I file ITR for Partnership firm and provide Remunaration... if Books of accounts Maintained and Without Tax Audit...?
Rohit Gupta
(M.Com / IPCC)
(54 Points)
Replied 01 June 2017
Dear Abhishek Goyal Sir,
What will be the taxable propotion of Remuneration & Profit in the hand of the Partners. If actual profit received by partner is more than 8% of turnover. than the balance portion of prrofit which received by partner is taxable in the hands of partner of will be exempt.
CS Advocate Abhishek Goyal
(M Com FCS LLB M-AIMA )
(13531 Points)
Replied 01 June 2017
| Originally posted by : Rohit Gupta | ||
|
Dear Abhishek Goyal Sir, What will be the taxable propotion of Remuneration & Profit in the hand of the Partners. If actual profit received by partner is more than 8% of turnover. than the balance portion of prrofit which received by partner is taxable in the hands of partner of will be exempt. |
|
Remuneration is always taxable in the hands of partner since it is a deductible expenses in the hands of firm. Share in profit of the firm is exempt in the hands of partners as it is the firm which is liable to pay tax on it.
Rohit Gupta
(M.Com / IPCC)
(54 Points)
Replied 01 June 2017
| Originally posted by : CS Abhishek Goyal | ||
|
Originally posted by : Rohit Gupta Dear Abhishek Goyal Sir, What will be the taxable propotion of Remuneration & Profit in the hand of the Partners. If actual profit received by partner is more than 8% of turnover. than the balance portion of prrofit which received by partner is taxable in the hands of partner of will be exempt. Remuneration is always taxable in the hands of partner since it is a deductible expenses in the hands of firm. Share in profit of the firm is exempt in the hands of partners as it is the firm which is liable to pay tax on it. |
|
Sir in my Case T/o is 8,56,000/- Partners Remuneration is 1,50,000/-, Profit taxable u/s 44AD is Rs.68480/-. but the actual profit received by the partners over and above remuneration is 1,40,000/- than what will be the taxability of the remaining profit i.e. Rs.71,520/-(140000-68480)
CAclubindia
