18 March 2015
A Partnership firm with 2 partners has turnover of Rs 85 lacs and interest income of 12.5 lacs from firm's fdrs in bank . Partners remuneration is 4 lac each partner . then under sec 44 AD 8 % will be applicable on gross receipts of 97.5 lacs and then computation will be done or otherwise . Please confirm how will tax be computed in this case under 44 AD.
19 March 2015
The moot question why the F.D. was made with the bank. If it is directly related with business, you can claim 8% on the Turnover of Rs. 97.50 Lacs. Otherwise you have calculate profit on Rs. 85 Lacs and the balance amount shall be treated as income from other source. However, you can claim Interest and Remuneration from the Total Profit.
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