Partnership firm taxation for a.y.2018-19

Page no : 2

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 12 January 2019

No.

Once taxed under partnership firm then it will be distribution of capital/shares.

Upgrade to CAclubindia Pro. Subscribe Now!

Jyoti (Prop) (28 Points)
Replied 18 July 2019

IF A PARTNERSHIP FIRM HAS TURNOVER OF RS. 16.00 LAC AND DECLARE PROFIT AT 2% AFTER CHARGING SALARY/INTEREST TO PARTNER AND NEVER OPTED FOR 44 AD IN PREVIOUS YEARS; IF IT CAN FILE ITS RETURN WITH PROFIT AND LOSS AND BALANCE SHEET WITHOUT TAX AUDIT.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 18 July 2019

As such no.

But add back the interest and remuneration paid to partners to net profit (i.e. 2% around), and if this amount is above 6/8% of TO (i.e. 16 lakhs); you can avoid audit.

1 Like

Surakshit Naagar (7 Points)
Replied 22 July 2019

Originally posted by : Dhirajlal Rambhia
	" What will be consequences of declaring net profit above 8% and then taking deduction for partners remunaration and interest on capital @ 12%?? No problem, unless the amount is offered to tax again in the hands of partners !!! "is it required to audit the books of account even if turnover is below audit limit??" Once income is offered under presumptive assessment, question of maintaining books does not arise...... so, where is the question of tax audit u/s. 44AB...

Ravi Mange (2 Points)
Replied 05 September 2019

Sir , Accounting Year 2018-19 mera Partner Ship firm ka turn over Rs,40 Lakh he Or Capital Interest Rs. 3,60,000/- Or Remuneration to Partner Rs.1,10,000/- Profit NIL (Total Profit Rs. 4,70,000/- Less Capital Interest Rs.3,60,000/- & remuneration Rs. 1,10,000/- Share Of Profit NIL) Muje Audit Applicable Hoga Kaya , Last Year Accounting Year 2017-18 Me Audit me thha . Please Sir