44ad partnership firm 7.9% income on digital rcpt! then?

Your receipts are exactly digital receipts (100%) then you can declare Your profit 6% or above if your business is eligible under the sec 44AD...

The Remuneration and Interest is not available for partners if the Firm opt presumptive scheme. No more tax liabilities to partners after get the profit share. They can equally share the profit as per their capital percentage.
As per Your query in case two partners the profit amount Rs. 957,484 (6% - 780,305) will be share Rs 478742 and it's fully  taxable EXEMPTED in the hands of Partner...

As per sec 44AD Depreciation not available as expenditure. But, You can depreciate the Assets values as per Your book keeping...

Yes, agree with Mr. Raja, if the firm avails the benefit of Sec.44AD then it will be presumed that all the expenditures including depreciation have already been considered and only 6% or more of the turnover will be taken as income.

If the firm doesn't opt for Sec.44AD, then it can claim all the expenses incurred as well as depreciation. But, in that case it has to comply with Sec.44AA and 44AB,i.e., it has to maintain proper books of accounts and as the turnover exceeds Rs.1 Crore, tax audit should be done.

Thankyou for your kind response... but i have little more query that i want to enjoy 44AD for sure... and then rather paying 30% on the remaining 1,77,000/- Extra Income why not partner's should take this as taxable income as interest or remuneration.... would you pls guide me that how can i do the acounting for

do i take this as interest on capital or partner's remuneration

and other question is since last few years every year i was showing partner's remuneration and interest as well as depreciation in expenses and then 8% of profit over that

so if i will change this current year will be ok?

JFI: although i am managing my books of accounts but i am comfortable to file 44AD, to be simple as my turnover is below 2Cr.

Well...

First of in Previous AYs Partnership Firm opt u/s 44AD and they also avail the benefit of Remuneratiomn and Interest on Capital (Not available Depreciation). After the deductions they will be pay tax @ 30% on balance amount...

In FY 2016-17 the Remuneration and Interest not availbale Bcoz, However, Finance Act 2016 has deleted the proviso appearing in Section 44AD (2), consequent to which, deduction of the partner’s interest and salary is not further allowed for a partnership firm opting for presumptive scheme under Section 44AD of the Act In this context, we would, in this specifically, dwell upon the taxability of the Partner’s salary in the Partner’s hand when the Partnership firm is taxed under Section 44AD on presumptive basis.

Thanks again for your kind and detailed reply

So Two Options>>

#1

So what i understood that as per 44AD if i have all digital rcpt then directly pay tax on 6% profit no need to keep proof of expenses and accounting .

#2

pay tax on the full amount which is around 7.5% as per our own calculation and dont need to make adjustment for interest and salary in books after all income is coming as business income which is tax free in hand of partners

let me know which is the better option for me and what i should do for me

I think, if you are able to maintain your books of accounts, bills, vouchers properly, then you don't opt for Sec.44AD, because if you maintain proper Accounts you can show any % of profit, you won't have any tension regarding % of profit to be declared at the last moment. Even you can claim loss also by charging any type of business related expenses, which is not possible in case if you opt for Sec.44AD. The disadvantage will be you have to comply tax audit requirements.

Let see what other experts say regarding this.

I want to go with 44AD to keep me out of audit and other burdon pls suggest what to do ?

SORRY DEAR FOR LATE ATTEMPT... NOT AVAILABLE NOTIFICATIONS IN CCI PORTAL

Originally posted by : Jugal
	Thanks again for your kind and detailed reply So Two Options>> #1 So what i understood that as per 44AD if i have all digital rcpt then directly pay tax on 6% profit no need to keep proof of expenses and accounting . --->>> YES... YOU CAN. If You are shown @ 6% then the profit will be share 50 : 50 (If 2 partners) as Rs. 390153 each... #2 pay tax on the full amount which is around 7.5% as per our own calculation and dont need to make adjustment for interest and salary in books after all income is coming as business income which is tax free in hand of partners --->> - YES... EXACTLY. If You are shown @ 7.5% then the profit will be share 50 : 50 (If 2 partners) as Rs. 478742 each... let me know which is the better option for me and what i should do for me --->> Both way is available in this sec.  Also the amount is fully Tax Free in the hands of partners.

Originally posted by : Jugal
	I want to go with 44AD to keep me out of audit and other burdon pls suggest what to do ?

No more questions if you are opt u/s 44AD. Keep your Income receipts...

Is the Software Development Business in Partnership firm will be eligible for 44AD

which form applied ITR4 or ITR5 ?

and we have to show full details of P&L and Balance sheet in return or only minimum required as earlier in 44AD?