Section 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2015 Dear expert,
in partnership firm the turnover is 5000000 and after deducting all expenses and depreciation the net profit is 6%
my Query is can i file return U/S 44AD.

plzz guide me on this issue

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

21 March 2015 Since your turnover is less than Rs. 1 crore you can file return u/s 44AD but minimum net profit to be shown is 8% otherwise audit will be required u/s 44AB. Moreover all expenses including depreciation will be deemed to have been provided u/s 44AD in 8% limit. Only interest on capital and remuneration to partners will be allowed as expenses to be deducted out of 8% net profit.
that is to say 8% minimum net profit will be after all expenses and depreciation.