Rebate u/s 87A with 44AD

Correct for AY 2017-18.

(assuming gross taxable income of Resident Individual below 5 lakhs)

Very Good Morning Dear........

What do you mean by ........."Now the situation papers not satisfied / clear"..........

I have not undersood the real problem........

Well, For eligible business the ITR can be filed for partnership firm u/s. 44AD. 

As the TDS for this year is deducted, that doesn't restrict its eligibility, but the date of filling u/s. 139(1) is over............. so, if audit not possible........ go for u/s.139(4) filling....... but any losess would not be carried forwarded.

If Audit problem....... and loss not required to carry forward.......... declare 6%  on bank + 8%  on cash transactions under 'no account case'......... tile trading... eligible for 44AD when 1.70 Cr turnover in FY 2016-17.

Estimated tax liability [1.7Cr * avarage 7%] * 30% tax slab for firm...... plus interest u/s. 234 ...........

Good Luck.......

When we declare 8% average profit margin.......... means question of loss doesn't arise......

Yes.

Presumptive assessment u/s. 44AD.......... means minimum 6 or 8% PROFIT.......... if want to declare any thing below section 44AB (tax audit) applicable.

But there is chance to file loss ITR for partnership firm u/s. 44AD, as tax audit not applicable......

Read: If the assessee does so, i.e., declares lower income and his actual income exceeds the maximum amount which is not chargeable to tax, (for partnership firm it is zero) then the relief from maintenance of books of account is not available and he is required to maintain the books of account as per section 44AA and further, he has to get such books of account audited as per section 44AB.

Refer: Tutorials/Section-44AD-Theory.

So, if there is no other income and total loss in the business, the firm can be assessed under presumptive asessment, i.e. tax audit liability will not be applicable as per section.44AD(5)