Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

can partners show their income u/s 44AD

akshay kumar garg (student) (73 Points)

07 January 2019

Dear all
I have a query re Income Tax section 44AD

Can partner show their income using section 44AD??

Reply
Follow
Share

7 Replies

Anshul Wadhwa (student) (27 Points)
Replied 07 January 2019

Eligibility Criteria to avail the Benefits of Presumptive Taxation Scheme under Section 44AD Below are the types of tax assesses who can adopt the provisions of presumptive taxation scheme Under Section 44AD : Resident Individual tax payers Hindu Undivided Families Partnership Firm (except LLP or Limited Liability Partnership Firm) Conclusion: Yes, partners can show their business income u/s 44AD.

Upgrade to CAclubindia Pro. Subscribe Now!

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 07 January 2019

In case of partner income received is in the nature of Remuneration, Interest on capital and Share of profit

and any other business carried by partner in his individual capacity (ignored)

so, for calculating income U/s. 44AD

Remuneration will not be allowed for section 44AD

Share of profit is not taxable, hence no need to consider

For Interest in come whether section 44AD can be opted or not need to be check

Girish Jain (150 Points)
Replied 08 January 2019

No partners can't declare income from firm under 44 AD. If they have separate business and turnover is under presumptive taxtion limit, then they can offer 44AD only for that business. Beacause when you say, I will pay 8% on Remuneration and Interest on Capital, it will. Not serve purpose for department.

Harshavardhan (student) (138 Points)
Replied 08 January 2019

Partners can't opt benefit of 44AD if they are receiving income from firm.

akshay kumar garg (student) (73 Points)
Replied 08 January 2019

why not
as their Remuneration and Interest income taxable As Business Income

Upgrade to CAclubindia Pro. Subscribe Now!

Girish Jain (150 Points)
Replied 08 January 2019

Akshay, it is chargeable under the head "PGBP" U/s 28 and not as Business income. Remuneration and IOC cannot be treated as Business under income tax definition.

1 Like