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Sec 44AD to partner of a firm

MAEA 1993 (24 Points)

18 October 2018

Can partner of a firm declare his income as per 44AD

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6 Replies

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 18 October 2018

He can't declare the salary or interest received from firm under 44AD. However if he has any business other than that of firm, he can opt 44AD for that business.

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CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 18 October 2018

Presumptive taxation can be opt by an assesse who is carrying on bis own business or profession.

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MAEA 1993 (24 Points)
Replied 18 October 2018

As per sec 28, interest/remuneration from firm is chargeable as business income in hands of partner.

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CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 18 October 2018

Yes. But the partners collectively carrying on the business right? It is not only by the Indivdual partner.

Any income received from the firm by the partner is chageable to tax under business income u/s 28 and he need to file ITR 3 and not ITR 4 which is presumptive taxation.

So the partner cannot opt presumptive taxation any way.

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