Whether remuneration is taxable under the hands of partners if firm is under presumptive taxation and remuneration is not allowed as deduction?
Partnership firms
Page no : 2
CA. Sunil Gokhale
(Teacher)
(1484 Points)
Replied 09 March 2018
Under presumptive scheme of taxation the remuneration to partners will be deemed to have been allowed just like depreciation. Hence, it will be fully taxable in the hands of the partner. The question of limits of Sec. 40(b) will not arise as it is deemed to have been allowed in full.
deepak
( Practising CA)
(34 Points)
Replied 12 March 2018
If net profit ratios bfore deducting interest & remmuneration is more than 8%
but np ratio after deducting interest & remmuneartion is below 8% is it required to tax audit under 44ab for AY 2017-18
CA Udit Agarwal
(Chartered Accountant)
(49 Points)
Replied 02 August 2018
From A.Y 2017-18 & onwrads Deduction U/S 40(b) is not allowed for calculation Income U/S 44AD i.e presumptive taxation. Hence Now U/S 44AD minimum 8% of Turnover will be treated as Income for the Partnership Firms.
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