Query relating to Tax audit

1675 views 4 replies

Gautam Patel

CA and CWA

146 Points Joined December 2007

Whether interest on partners capital received by partner will form part of turnover as specified by section 44 AB (tax audit) in respect of his individual assessment. If yes,then please specify the reference for the definition of turnover as per Sec 44 AB ?

Replies (4)

Satyendra sahu

service

216 Points Joined July 2008

Hi Goutam,

Please refer sec 44AB, which specifies total sale, turnover or gross receipt in business for the previous year.

Here the intention is receipt of business not the payment made by business.

Interest paid to partner over their capital, how you can link these two things. One is income of business and other is expenditure.

I request you to read the provisions clearly and with open mind.

Guest

Originally posted by :Gautam J Patel
"	Whether interest on partners capital received by partner will form part of turnover as specified by section 44 AB (tax audit) in respect of his individual assessment. If yes,then please specify the reference for the definition of turnover as per Sec 44 AB ?	"

Yes Mr. Gautam patel, Interest recd by Partners from firm, is considered as Turnover u/s 44AB. Refer Section 28(v) for clarity of Business Income

Guest

Gautam has right question. You cannot get his question. You refer provision of section 28(v) clearly and with open mind