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Sec 44ad - itr 4s

ITR 4802 views 12 replies

As per Sec. 44AD, a partnership firm is allowed to deduct interest on capital and remuneration to working partners from the presumptive income of 8%.

But in the ITR for 4S, there is no provision to deduct the interest and remuneration - It just asks turnover and calculates 8%.

Please advise me how to adjust the interest and remuneration in form 4S ..

thanks in advance...

vinodaca74 @ gmail.com

Replies (12)

just deduct the interest n remunaration part from turnover

But then i will not get the full benefit as per law.

According to Sec 44AD, "Salary and interest shall be deducted from the income computed under this section", which is 8% of turnover.

For Eg., If the turnover is 30 lakhs,

8% is 2.4 Lakhs

Less Interest (say 12% on 1 Lakh capital) = 12000

Balance is 2,28,000/-

Less: Remuneration - first 3 lakhs - 90%  = 2,05,200/-

Total Income is 22,800 only.

Tax on 22,800 = Rs. 7,045/-

How can i know the remuneration without calculating like this.

Also, I am eligible to deduct the interest & remuneration from the 8% income.

Please correct if I am wrong.

 

 

deduct from turnover interst n rempunaration part then it will show correctly just check out once. it is ryt as par as i know

you will provide income computation ryt then what is the issue not showing remuneartion part. just for return purpose show it in that way. i think there is no problem with this

Dear Sir,

Partnership firms cannot file ITR-4S as per the rules. A partnership firm has file its return in ITR-5 only. The matter will not change even if it is showing income u/s. 44AD. 

dear arun kumar a firm can file ITR 4S.

Vinod Ji, after reading the section 44AD I came to the conclusion that you can deduct the salary and interest paid to the partners from presumptive income subject to the condition that after deduction your chargebale profit must not fall below 8%, if it falls then you have to do audit and file ITR 4.

hence you can deduct salary and interest of partner only if your presumptive % is more than 8%

Dear Harihar,

as per instructions of ITR-4S, an individual or HUF only can file the return in ITR-4S.

A partnership have to file ITR-5 only. You can show profit u/s. 44AD and also you can diduct interest and remuneration to partners.

In Schedule-BP, point 23 allows any interest and remuneration paid to partners and you can show your presumptive income in 33rd point. Hence you can adjust interest and remuneration to partners.

For your consideration i am attaching the instructions to ITR-4S herewith.

 

sorry I was wrong, I gave my view on the interpretation of sec 44AD and have'nt seen the instruction of ITR 4S

Please share from where I can get ICAI Tax Suite Software? My software is corrupted now, and want a fresh copy to download.

Thank you very much Arun, Harihar & Kavitha, for sharing your knowledge.. It helped me a lot..

vinodaca74 @ gmail.com

You might be happy to know that Tax Suite Software is Freely available and  just a click away. Go to the below link and get your copy immediately.

Link: https://icai.taxsuite.in/subsinfo.htm?mid=00000

Mr. Chandra ...Tax Suite Software Freely available, just click on the below link and get your copy immediately.

Link: https://icai.taxsuite.in/subsinfo.htm?mid=00000


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