Regarding Deemed Profits u/s 44AF

Tax queries 1285 views 3 replies

Can Partnership firms running polishing industry can file return on computation u/s 44AF as Deemed profits?

Please guide me fellas..

Replies (3)

Sec 44F applies to retail traders with annual sales less than 40 lacs.

i dont understand if the polishing industry comes udet the retail industry, plesae confirn that, and if it comes under the retail trade catagory and the total turnover doesnot exceed 40 lakhs, then sure the firn can take the 44AF,.. and pay tax on 5 pecent of the total turover, but befor e calculatuing tax, make sure you calculate the remunaration to partners under sec 40A, and the resultant amount wll be taken as incoem from Business of the firm

 

I hop ei helped, .... Njoy ... Chao

I don't think so it will be covered under retail business. You can show your profit less than 5% and books are not required to audit if turnover is less than 40Lacs because sec 44AF is applicable only for retail business.

Thanks,

Lovenish Bansal


CCI Pro

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