In A.Y. 2015-16, a partnership firm has filed ITR-4 (maintaining books) with NP, Salary to partners and Interest on Capital amounting to 12%. Now for A.Y. 2016-17, firms can show deemed profit of 8% or more (by filing ITR-4s) and also claim interest on capital and salary to partners from it. Now is it advisable to show deemed profit restricted to 8% and claim interest on capital and salary from it, for A.Y. 2016-17. All this keeping in view that from A.Y. 2017-18, this deemed profit of 8% will exclude interest on capital and salary to partners. Can IT Department, raise this objection of showing less net profit margin i.e. @ 8% in A.Y. 2016-17, while it was 12% net profit margin in A.Y. 2015-16, when books were maintained?
Menu
Deemed profit for partnership firm
Replies (2)
YES IT DEPARTMENT RAISE OBJECTION OF SHOWING LESS NET PROFIT
The question of any objection doesn't arise, because it is as per allowable limits of 8% u/s. 44AD!!!
More over there are case laws in favour of assessees, for non sustaining the objection because of no books of accounts to be maintained!!
Recent Topics :
- FAST DS 2026 MAIL QUERY
- Does Anyone need CA Foundation books of May2026 at
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
Related Topics :
CAclubindia
