A professional partnership firm having gross receipts of INR 10 lakhs and having expenses (Before Interest and remuneration to partners) of INR 4 lakhs. now whether this needs to declare income at 50% of 10 lakhs and pay income tax of 1.5 lakhs as interest n remuneration is not allowed further.
whether this firm needs to get his books audited if it doesnt show income at 50%. further what about interest and remuneration in partners individual capacity ? taxed or exempt
If You will show the profit less than limit as per sec 44ADA then Tax Audit is applicable... Also no way for claim Remuneration & Interest if You opt u/s 44ADA...
If You will file u/s 44ADA and show the profit @ 50% or above then Profit amount transfered to Partners capital account. The profit share fully exempted in the hands of partners...
Please go to read this forum under this link. You can get some clarity about presumptive taxation...
CAclubindia
