Return under 44AD by a partnership firm having loss

[Sanjeev Agrawal]

Whether a partnership firm can file return U/S 44AD for AY 2017.18 with a business turnover of ₹ 90 lakh and loss of ₹ 10000,without getting accounts audited under section 44 AB..after paying interest on capital to partners and remuneration as per partnership deed..section 44AD(2) prohibits deductions under section 30 to 38 but not under section 40 (b)...the income in this case is below the maximum amount which is not taxable...

AI Summary

Partnership Firm Can File Return Under Section 44AD for AY 2017-18 Despite Loss, No Audit Needed A partnership firm inquired about filing a return under Section 44AD for the assessment year 2017-18 with a business turnover of 90 lakh and a loss of 10,000, without auditing accounts under Section 44AB. The firm paid interest on capital and remuneration as per the partnership deed, and the income was below the taxable limit. One response indicated that separate returns must be filed by the firm and partners, even with a loss. Another response confirmed that the firm could file under Section 44AD despite the loss, to maintain eligibility for future exemptions under this section.