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Presumptive taxation
Ours is partnership firm turnover is less than 1crore and NP is less than 8 %. As per sec44ad audit is mandatory in our case.
Can we opt out of presumptive taxation sec44ad . If yes audit is compulsory or not because turnover is less than Rs2 crores.
Replies (10)
if profit is less than 8% you have require tax audit
Tax Audit is compulsory in your case.
for. a.y. 2017-18, the limit u/ s 44AD is 1 cr and for a.y. 2018-19 it is 2 crs. if you are declaring less than 8% of turn over then tax audit is mandatory. if you declare 8% or more tax audit is not mandatory
tax audit is compulsory
If you opt out of Sec 44AD then Tax audit would be compulsory in your case. Further you would not be able to claim benefit of Section 44AD for next 5 Assessment Years.
subsection 4 to section 44AD is effective from A.Y. 2018-19
Thanks Gentlemen
For our turn over of Rs25 lakhs NP will be Rs2 lakhs @ 8%. How much tax is payable without audit for partnership firm for this year. Sec44AD2 has been deleted now. Please give tax for last year also.
Partnership Firm has a flat tax rate of 30%. Add to that Educational Cess at 3%. Effective tax rate including Education Cess is 30.9%. Tax would be Rs. 2,00,000*30.9%=Rs.60,800.
Partnership Firm has a flat tax rate of 30%. Add to that Educational Cess at 3%. Effective tax rate including Education Cess is 30.9%. Tax would be Rs. 2,00,000*30.9%=Rs.60,800.
Tax audit is compulsory irrespective of the fact that you are opting for presumptive taxation(Section 44AD) as you are liable for tax audit u/s 44AB (profit below 8%).
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