quierries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2010
QUEERIES

1.An Individual a Trader for the Assessment year 2010 – 2011 has a Turnover from the business carried on by him exceeds the limits specified under section 44AB for the first time i.e., subjected to Audit U/S 44AB . Whether the provisions of section 194A / 194C etc are applicable to the said assessee , Since he is subjected to Audit for the first time . Kindly Clarify

2.A Partnership Firm consisting of 4 Partners was carrying on business of partnership under an instrument of partnership deed. In the said partnership deed there is a clause for payment of Remuneration to Working partners . The allowable Remuneration is calculated under the provisions of the I T Act i.e., as follows upto 31.03.2009

First 75,000 Profit 90 %
Next 75,000 Profit 60 %
Balance Profit 40 %

However with effect from 01.04.2009 there is an amendment to the said clause of allowable remuneration under the provisions of I T Act .

Now my Querry is whether the Partnership Deed is to be changed for claiming the Remuneration under the Amended Provisions of the I T Act .Kindly clarify

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 July 2010 1. He will be liable for tax deduction from the current year if the turnover exceeded the turnover limit last year.

2. Amendment in partnership deed mandatory as per requirement of Section 40(b).