Section 44ad

Hi

First of all if you are declaring income u/s. 44AD you dont need require to prepare accounts so you cancertianly say no to accounts (in case of AO)

hiiii,

The remuneration given to partner is taxable in the hands of partenr i.e.3,30,000/- in their profit sharing Ratio if Remuneration Ratio is not Metioned in Partnership deed.

and remaining 70,000/- is taxable @ 30.90% in the hands of Firm and this is exempt for partners.

I know that u/s 44AD books of accounts are not required....

But, my question is...  that the firm is maintaining books of accounts and its actual net profit is higher than 8%

but, as the turnover of the firm is less that 1 crore, the firm is taking advantage of sec 44AD and is paying tax on 8% of turnover.

now in this case how would the actual profit be capitalized...

look when you are taking the advantage of section 44 AD than you can not capitalize the whole profit 

Rather you have to capitalize the profit as per section 44 AD.

And if you want to capitalize whole profit than show profit @ 25 % (Actual) in the IT Return 4S.

if you capitalize whole profit without showing actual profit in return than it will attract section 68 unexplained cash credit and your firm is liable to pay tax on it.

Agree with Viral.