CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
17 July 2012how to compute book profit to calculate remmuneration as per sec 40(b) , if assessement is done as per sec 44AD ( presumptive taxation ) of income tax act.
i mean profit calculated @ 8% on tournover, it self to be taken as book profit to calculate remmuneration limits as per sec 40 (b) of income tax act.
Yajendra Adhikari
(Chartered Accountant)
(334 Points)
Replied 17 July 2012
Yes, that will be 8% of the total turnover
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 19 July 2012
As the assessee is a firm you will be required to add back the remuneration/interest paid to the partners to arrive at the book profits. After the deductin on account of remuneration shall be calculated as per sectino 40(b).
CAclubindia
