Partnership Firm & 44AD
This query is : Resolved
10 September 2024
Can we declare income u/s.44AD of a newly formed partnership firm for FY 2023-24 ? And can we also further deduct Salary and Interest on capital paid to partners in a non-audit case ?
10 September 2024
1. Yes,
2. Not from the presumptive income.
2. Not from the presumptive income.
10 September 2024
Thanks sir. If I conduct audit of the said firm, then whether Interest and salary to partners will be allowed as deduction or not ?
10 September 2024
Audit is not the criteria. If you declare income under normal assessment (tax audit may or may not be applicable), in that case you can deduct the salary & interest paid to partners as expenditures of the firm.
10 September 2024
Thanks for your quick reply sir. But I could not understand "normal assessment". If I prepare detailed profit and loss a/c and B/sheet, without audit, may I show the salary and interest to partners as expenses ?
10 September 2024
Yes.
Normal assessment in a way means 'not opting for sec. 44AD IT act (or presumptive assessment)'.
Normal assessment in a way means 'not opting for sec. 44AD IT act (or presumptive assessment)'.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- GST ON EXPORT COMMISSION
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
