Whether remuneration is taxable under the hands of partners if firm is under presumptive taxation and remuneration is not allowed as deduction?
Menu
Partnership firms
Replies (18)
Whether remuneration is taxable under the hands of partners if firm is under presumptive taxation and remuneration is not allowed as deduction?
Under presumptive scheme of taxation the remuneration to partners will be deemed to have been allowed just like depreciation. Hence, it will be fully taxable in the hands of the partner. The question of limits of Sec. 40(b) will not arise as it is deemed to have been allowed in full.
If net profit ratios bfore deducting interest & remmuneration is more than 8%
but np ratio after deducting interest & remmuneartion is below 8% is it required to tax audit under 44ab for AY 2017-18
From A.Y 2017-18 & onwrads Deduction U/S 40(b) is not allowed for calculation Income U/S 44AD i.e presumptive taxation. Hence Now U/S 44AD minimum 8% of Turnover will be treated as Income for the Partnership Firms.
Recent Threads
- Export sales not realised payment not received fro
- RCM related queries
- Negative Export Value in GSTR 3B
- Income tax intimation -AY 24-25
- Tax Implications of Alumni Union (R) under Society
- Heard & Seen Around – Your Daily Economi
- Purchase and sales of Shares entry in Tally
- Where to know latest GST HSN Codes and their Rates
- Hsn code and rate cnsl crude oil
- Clarification required on taxation of income from
Related Threads
CAclubindia
