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Section 44 a/d

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saravanan

Article Assistant

24 Points Posted on 03 September 2013

Whether loss can be claimed under Sec 44 AD?

Under this section remuneration of partners (included salary ,bonus and commision) and interest can be deducted to the extent of 40(b).

For example If the turnover of the eligible business is Rs. 50,00,000.Presumptive income : 8 % of turnover which is 4,00,000 and the partners remuneration is Rs.330000(as per 40(b)) and the interest on capital @ 12% is Rs.1,20,000 ( capital-Rs.10,00,000).Then the total income will become negative of Rs.50,000.

whether this loss will occur and if occurs whether it could be carried forward ?

Replies (6)

Sanket Gada

Sr. ERP Consultant & Tax Consultant

241 Points Posted on 03 September 2013

Yes the loss can be claimed and can be carried forward

CA girl

Article Trainee-CA Final

1942 Points Posted on 03 September 2013

But, is'nt it like the interest on capital can be provided only if there are sufficient profits? which in this case could be more than 4 lakhs(as 4 lakhs is on presumptive basis) could the interest on capital be treated as loss under this section?

srikumar

audit staff

1203 Points Posted on 03 September 2013

sir , 44ad for partnership firm how to prepare ? explain with some examples i am confused,,,,,

Ramanuj

Accountant.

834 Points Posted on 03 September 2013

Dear all

Please give right answering about this question. i have also confused

thanks

CA CS Jainam Shah

Practicing Chartered Accountant

2492 Points Posted on 04 September 2013

In my opinion, calculation of remuneration should be on after deducting the interest on capital. The working would be aa under. 4,00,000-1,20,000 = 2,80,000 Book Profit Amd on this 2,80,000 the remuneration should be calculated. 2,80,000*90% = 2,52,000 The taxable income is 28,000.