Question ID :
39288
Determination of Book Profit if a partnership firm has opted for 44AD
If a partnership firm has opted for 44AD, the turnover is Rs 50,00,000 and the profit declared thereon is Rs 3L (being 6% of Rs 50L) and the partners of the firm are getting the remuneration of Rs 10L each (there are 2 partners).
How Book Profit will be calculated so that maximum amount of partners Remuneration allowed as per law is determined.
Posted by
CA Neha Gupta
on
Jul 12, 2019
Filed Under
DIRECT TAXES
BOOK PROFIT WILL BE DETERMINED BEFORE CHARGING REMUNERATION.
Posted by
SUDIP KUMAR MUKHOPADHYAY on
Jul 13, 2019
Answer ID :
79040
Book profit is defined in explanation 3 to section 40(b)(v). Book profit will be taken without deducting remuneration to partners. Please note that deduction u/s. 40(b)(v) is not available in presumptive taxation u/s. 44AD, w.e.f 1.4.2017.
Posted by
CA PRADEEP C B on
Jul 16, 2019
Answer ID :
79045
Remuneration is not allowed as deduction from book profit if presumptive taxation is opted.
Posted by
CA. chunauti dholakia on
Jul 17, 2019