Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 11 December 2017
Yes ........ as said above (not under presumptive scheme), where remuneration paid to partners is as per section 40(b) of IT act......... & final declared profit is 8% or above....
[in your example ...... Check the remuneration & interest paid is as per section 40(b)]
JEEVIKA AND CO
(PROPRIETRIX)
(153 Points)
Replied 11 December 2017
THANK YOU SIR...
DON'T BE SAY SORRY ALSO I'M NOT AWARNESS FOR THIS ELATED THEN ONLY I ASK AGAIN AND AGAIN...
SORRY FOR THE MISUNDERSTANDINGS AND TAKE ADVANTAGE FOR THIS...
ALSO WE CAN GO IT U/S 44AA... SO, I WILL CLEAR MY DOUBT..
THANK YOU FOR THE SUPPORTING FOR US...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 11 December 2017
It my pleasure, dear............. No question of being sorry for either........
JEEVIKA AND CO
(PROPRIETRIX)
(153 Points)
Replied 13 December 2017
Respected Sir.,
One more reply please...
The above said partnership partmer's capital accounts is AY 2016-17 (Opening Balance)
Mr. Raman :
Capital Account - Rs. 200,000 (Capital Introduced0
Current Account - Rs. 65000 (Capital received from PandL past Years)
Mr. James kannan :
Capital Account - Rs. 200,000 (Capital Introduced0
Current Account - Rs. 65000 (Capital received from PandL past Years)
in this way How to I calculate interest and which amount...? The 12% will calculated Rs. 265000...?
or Any other calculations...?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 13 December 2017
As per sub-section 40(b) inserted with effect from assessment year 1993-94
.............
(e) any payment of interest to any partner which is authorised by and is in accordance with the terms of partnership deed and relates to the period falling after the date of such partnership is allowed if rate of interest does not exceed 12% p.a. If it exceeds 12% p.a. excess is disallowed.
...............
Which means if the partnership deed has specified the same, interest can be paid over fixed as well as current capital acc of the partners.
JEEVIKA AND CO
(PROPRIETRIX)
(153 Points)
Replied 13 December 2017
Yes Sir...
In partnership deed it's notified 12% and also remuneration...
My doubt is above said value., How to I calculate Interest...?
It's flat rate...?
200000 * 12% = 24000 & 65000 * 12% = 7800....
Is it correct way or any other calculations Sir...?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 13 December 2017
Yes, as such it is OK; It is simple interest credited at the end of year.
Unless specified in partnership deed about interest over current account along with fixed capital investment, it is likely that the same may be disallowed by officer in firm's account, but at the same time it will be taxfree in partners' hand.
But no other calculation for interest payable to partners.
JEEVIKA AND CO
(PROPRIETRIX)
(153 Points)
Replied 14 December 2017
Dear Sir.,
Thank you for the reply Sir.
As per my calculation is correct then ill pass the journal as
DR. INTEREST TO PARTNERS - RS. 31800...
CR. CURRENT ACCOUNT - RS. 31800...
CAN I FOLLOW THIS WAY SIR...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 14 December 2017
Correct....... subject to availability as per partnership deed.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 14 December 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 14 December 2017
Its God's Blessings...........
Good Luck
NAVJOT
(CA)
(22 Points)
Replied 29 August 2018
Divya Sri
(4 Points)
Replied 01 November 2018
Divya Sri
(4 Points)
Replied 01 November 2018
CAclubindia
