hi, I am preparing return for a partnership firm whose annual turnover is less than 60 lacs and partners interest and remuneration cumulatively more than 8% of turnover, net profit of firm is 0, in this case can i prepare it under section 44ad?
Khuzema (Accountant) (49 Points)
11 December 2011hi, I am preparing return for a partnership firm whose annual turnover is less than 60 lacs and partners interest and remuneration cumulatively more than 8% of turnover, net profit of firm is 0, in this case can i prepare it under section 44ad?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 11 December 2011
No Problem even if the Net Profit is Nil after Salary and Interest. Only remember that the Net Profit should be 8% or more before Salary and Interest.
Regards,
Devendra Kulkarni
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
