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Partnership firm

Nishu Kotian (332 Points)

16 November 2019

partnership firm 8 % tax calculation is partners shares or before interest and remunaration

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (167640 Points)
Replied 16 November 2019

No deduction of remuneration &/or interest after arriving at 6/8% (or more under sec 44AD) as deemed profit of the firm.

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Kapadia Pravin (17254 Points)
Replied 22 November 2019

The presumptive profit under 44AD shall be minimum 6% / 8% or actual whichever is higher. This calculation is on turnover or Gross receipts .

That means 92% /94% or less shall be allowed as presumptive expenses (which will be inclusive of Remuneration and interest payment to partners).

No seperate Deduction for payment to partners Remuneration and interest.