Partnership Firms
This query is : Resolved
15 July 2011
my friend have a partnership firm and the firm earn Rs. 12,00,000/- and the net profit earn from the firm is Rs.56000/- (ie below 8%) but the amount received is 12.00 Lakhs below 60.00 Lakhs
1. is it necessary to audit u/s 44ab. and is it mandatory of digital signature?
1. is it necessary to audit u/s 44ab. and is it mandatory of digital signature?
15 July 2011
As per the provisions of Section 44AD, a firm has to get his accounts audited if they are showing profit less than 8%. (As there is no minimum exemption limit for a partnership).
But 1 thing to be kept in mind is that this limit is before allowing salary and interest to partners u/s 40(b).
So if your profit before salary and interest is more than 96000 and after deducting salary and interest to partners it comes to 56000, then no need to get the accounts audited. Otherwise they have to be audited.
And Digital Signature is compulsory for all audited returns.
But 1 thing to be kept in mind is that this limit is before allowing salary and interest to partners u/s 40(b).
So if your profit before salary and interest is more than 96000 and after deducting salary and interest to partners it comes to 56000, then no need to get the accounts audited. Otherwise they have to be audited.
And Digital Signature is compulsory for all audited returns.
16 July 2011
how can i show the interest and salary to partners in itr-4s ?
If turnover of the firm is 12.00 Lakhs
as per 44AD i show an income of Rs.12.00(x)8% = 96,000 Less Interest and Salary of partner is 99000/-
So, 96000 - 99000 = -3000(loss)
can itr-4s or ITR - 4 to file the return?
If turnover of the firm is 12.00 Lakhs
as per 44AD i show an income of Rs.12.00(x)8% = 96,000 Less Interest and Salary of partner is 99000/-
So, 96000 - 99000 = -3000(loss)
can itr-4s or ITR - 4 to file the return?
16 July 2011
ITR 4S (SUGAM) is only for individual and HUF. For partnership you have to fill ITR 5.
16 July 2011
I agree with the expert as well with the querry raiser.
21 July 2011
Mr.sri, as per the new amendment to Section 44AB, Assessee doing business eg.Partnership business, having turn over/gross receipts less than 60 lacs, if their net profit is below 8% of the turn over/gross receipts then 44 AB is MANDATORY for that firm(IMPORTANT) Digital signature is mandatory...
@Mr.Aswani agarwal: The provision of checking 8% of Turover is now applicable to all business. Not only to 44AD retail business. The section 44AB have gone into amendment please refer...
@Mr.Aswani agarwal: The provision of checking 8% of Turover is now applicable to all business. Not only to 44AD retail business. The section 44AB have gone into amendment please refer...
22 July 2011
@ Ramya C C. Yes even i have not mentioned that it is only applicable to retail business only, that was erstwhile section 44AF.
I am saying that ITR 4S ia applicable to Individual and HUF only.
Regards
I am saying that ITR 4S ia applicable to Individual and HUF only.
Regards
22 July 2011
@Ramya C C: Partnership is not a business. It a person. So even though 44AD is applicable on them, but they have to file their return in FORM ITR 5.
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