Menu
Partnership return u/s 44AD
can partners remuneration and interest be deducted from declared 8% profit u/s 44ad.
Replies (4)
No 8% profit includes only business profit and losses. Partners remuneration and interest are part of profit and loss appropriation a/c.
Ms. Shruti is correct in a way. But as per your deed if you need to distribute the profit, you can deduct salaries first and then shares in the profit. The total amount will be tax free in the hands of Partners.
8% Profit is after deducting remuneration and interest
Audit u/s 44AB is applicable if he is declaring income lower than thereafter specified u/s 44AD. But, section 44AD is not applicable to Agency, Commission and Brokerage. Hence, he can declare income less than 8%.
Recent Threads
- Section 194T – TDS on Payments to Partners:
- Tax planning with HUF
- FCN ( Financial Credit Notes) Treatement in Books
- Indemnity bond notarization for Income Tax (NRI ou
- GST - RCM - for Commercial Building Rent
- Exemption from Penalty for delayed Board meeting
- TDS ON PROFESSIONAL FEES IN NON AUDIT CASE
- Penalty are applicable on short payment of GST
- Closing Stock111
- INVOCIE GENERATED FROM ONE COMPANY AND EWAY BILL G
Related Threads
CAclubindia
