Suppose a partnership firm has gross turnover of 10 lakhs, and opts for presumptive taxation under section 44AD. it will declare a profit of 80 thousand and pay tax accordingly.
if however, the actual profit is 2 lakhs. the question is:
1) how much max profit can it distribute to its partners
2) if it distributes 2 lakh, will it be tax free in hands of partners.
IF you are showing deemd profit U/S 44AD in return of income then how can u show the declared profit at the same time ?
IT has to be either one of them deemed profit or declared profit.
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