is provision for tax is allow for the computation of book profit for partnership firms
neha gupta (Staff) (63 Points)
26 July 2013is provision for tax is allow for the computation of book profit for partnership firms
sanjay singhal
(CA)
(987 Points)
Replied 26 July 2013
Book profit is calculated as under :
1. Find out net profit as per profit & loss a/c
2. make adjustment as provided by sections 28 to 44AD
3. Add remuneration to partners if debited to profit & loss a/c
As per section 40(a)(ii) Any sum paid on account of income tax is not deductible.
As per section 43 B unpaid statutory liability allowed on payment basis only.
If u are talking about Income tax provision it is not allowed.
If u are talking about other taxes it can be deducted if paid subsequently.
CA Sanjay Singhal
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
