Remuneration calculation in partnership firm if ITR filed under 44AD (Presumptive Scheme)

Aditya Chowdhary (0 Points)

05 August 2022  


Hello,

I am filing ITR in a partnership firm under presumptive taxation scheme, where it is asking for members capital.

The scenario is as under:

The 2 partners have invested 1Lakh each which was added under partners capital in company's books of accounts.

Now they have set a monthly remuneration of 10,000 per month each which was passed on to the partners capital account via journal entry under partners remuneration.

Partner A has actually withdrawn 70,000 in year and partner B has withdrawn 50,000 in the year.

Now the Capital for partner A became 1,50,000 (1,00,000 + 1,20,000 - 70,000) and partner B capital became 1,70,000 (1,00,000 + 1,20,000 - 50,000).

The gross turnover for the year was 5,00,000 and under presumptive scheme the profit comes down to 30,000 (6% on digital receipts).

Now, while filing the return what amount should be mentioned under "partners/owners capital" head? The Actual remuneration calculated in the books of accounts OR 50% of net profits as calculated under presumptive scheme?

Also, is it legally allowed to calculate remuneration more than the calculated profit (6% of turnover) if filing return under 44AD? We are not claiming any deductions on the same. 

Thank you!