Question ID :
31727
Taxation of Partnership firm u/s 44 ADA
U/S 44ADA. deductions from gross total income u/s 30 to 38 are deemed to be given while applying 50% profit.
I understand from perusal of various articles that the partners' remuneration and interest is not to be deducted from gross TO before applying 50% profit.
Again the remuneration is taxable in the hands of the individual partners.
How?
Or is it that the partner's remuneration & interest is deductible before arriving at 50% profit?
Posted by
Pradnya M Oak
on
Jul 04, 2018
Filed Under
DIRECT TAXES
PARTNER'S REMUNERATION AND INTEREST IS DEEMED TO HAVE BEEN DEDUCTED BEFORE ARRIVING AT 50% PROFIT AS Section 44ADA OF THE INCOME TAX ACT ,1961 STARTS WITH "NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 28 TO SECTION 43C" THEREFORE IT OVERRIDES SECTION 40(b) -i.e SECTION REGARDING REMUNERATION AND INTEREST TO PARTNERS OF FIRM ENGAGED IN PROFESSION.
Posted by
Deepak Kedia on
Jul 05, 2018
Answer ID :
69850
no deduction including interest and remuneration is available before or after 50%
Posted by
t sankar on
Jul 05, 2018
Answer ID :
69855
If partner's remuneration and interest is deemed to have been deducted from the gross income already, how do we calculate partners' share of remuneration and include it in the partners' individual ITR , esp because there would be no books of accounts.
eg. 10lakhs gross recipte then 5 lakhs is income- tax @ 30% =
What shall the partner have to show in his individual return as remuneration from firm?
Posted by
Pradnya M Oak on
Jul 11, 2018