Can a Partnership Firm adopt cash basis of accouting method in its First I T Return for Fin.Year 2005-06 ? Though the Firm is working from 2003-04 and not provded Interest for Loan taken and accordingly had not deducted TDS on interest. The Firm will debit the whole Interest amount when the same will be paid in future and on payment it will deduct the TDS.
yes the partnership firm can adopt cash basis of accounting....
deduct tds when intt. exp is booked or when payment of intt is made whichever is earlier( which in your case wud b same)
CAclubindia
