Interest on capital in Partnership Firm

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articleship
202 Points Posted on 08 October 2021
Hello Everyone, My question is should I consider Interest on Capital while calculating percentage of profit on turnover for 44ab of Income Tax act. Thanks & Regards in Advance.
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On 08 October 2021 at 15:06 Report
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This discussion addresses whether interest on capital should be considered when calculating the percentage of profit on turnover for Section 44AB of the Income Tax Act. The consensus is that if it's treated as business income, it forms part of the turnover and is includable for tax audit purposes under Section 44AB.

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My grammar is 💯 good I
7306 Points Posted on 08 October 2021

https://carajput.com/learn/different-meaning-of-turnover-in-income-tax-act-companies-act-and-gst.H T M L

Yes. If it is business income, it forms part of turnover

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On 08 October 2021 at 19:04
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Team Lead
7558 Points Posted on 09 October 2021
No you can't as it's not your business income.
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On 09 October 2021 at 20:30
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Chartered Accountants
2015 Points Posted on 10 October 2021

as per section 28 of IT Act 1961 any interest, salary, bonus, commission , or any amount due to or received by a partnner from a firm is taxable under as your business income. hence includable in tax audit limit u/s 44AB

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On 10 October 2021 at 15:14

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