Partners remuneration.....

This query is : Resolved 

12 July 2021 Suppose ABC & Co is partnership firm which have turnover of 50 lacs in FY 2020-21. Firm want to opt presumptive taxation u/s 44AD. Suppose firm declare 8% of turnover as profit i.e. 400000. Now in this case how we calculate partners remuneration u/s 40(b).

12 July 2021 8% of profit i.e. 400000 considered after deducting partners remuneration.

12 July 2021 Thanks Rashmi mam.. but how to calculate maximum partner's remuneration


12 July 2021 It will calculated on Book Profit after Interest. 90% of profit upto 3 lakh and 60% of profit on profit above 3 lakhs

12 July 2021 So what is book profit in this case.. whether 8 % deemed profit is book profit. Because in 44AD generally we not maintain books of account..

12 July 2021 so reverse calculate the remuneration.

12 July 2021 Thank you Rashmi mam

12 July 2021 Welcome.... It's my pleasure....😊


13 July 2021 @ Query 1

Partnership firm opting 44AD is not eligible to claim 40(b) from assessment year 2017-18 and onwards vide the omission of provsio to section 44AD(2) by Finance Act,2016.

@ Query 2 & 3

Infructous in view of above.



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