Presumptive Tax

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Presumptive Tax
Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 1-5-2021 Last Reply Date:- 11-5-2021 Income Tax
Got 2 Replies
Income Tax
As per section 44AD, even a partnershi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... p firm can avail the benefit of presumptive tax. In view of omission of proviso to section 44AD(2), 6% or 8% of turnover will be treated as taxable profit after giving effect to remuneration and inte .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rest on capital of partners. Let us assume 6% of turnover of a firm works out to ₹ 10 lakh. In such a situation, whether working partners have to offer salary which is deemed to have been allow .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed as income in their hands. If yes, how to arrive at the same. Reply By shwetal oswal: The Reply: Yes, we have to distribute salary to the working partners of that much amount, after which net prof .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it of the firm works out to ₹ 10 lakhs. Reply By ARVIND JAIN: The Reply: It is advisable to go for Tax Audit as Book profit before partner remuneration would be too high if we consider NP as p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... er Section 44AD . No Audit is advisable only in case real profit is so high to cover up remuneration and book profit.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X