Tax liability of firm (non audit)

Hi all,

Please suggest mode of calculation in following case:

Turnover                   Rs 4590000
Profit @ 8%                Rs 367200
Less Int on cap
(as per deed @ 12%)        Rs 133200
Book Profit                Rs 234000
Less Partners Salary
(90% of 234000)            Rs 210600
Profit from Business       Rs 23400

While filing ITR-5, same will be reported in item no 53 as under:
Gross Receipt              Rs 4590000
Gross Profit               Rs 367200 (Being 8% of Gross Turmover)
Expense                    Rs 343800 (Int on Capital & Remuneration of partners)
Net Profit                 Rs 23400

Please let me know whether above calculation & presentation in ITR-5 is correct or not

Replies (2)

I too need clarification regarding this. Is Book profit or Presumptive income as per sec.44AD need to be considered while computing Salary limits? Is 44AD Income replaces Book profits while computing Salary limits?

please suggest...

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