Please guide me which ITR form for Partnership firm within 20 lak TO

[Guest]

Dear Sir

After reading the instruction I had chosen ITR4 (Sugam) downloaded excel utility from income tax website itself for filing of return of AY 2017-18 FY 2016-17 as our gross turn over is within 20 lk and our profit is above 8% before Partnership remuneration & interest. As there was provision to enter the partnership remuneration in E6 it shall not be reduced in profit and shows tax payable on full profit amount. If I enter profit after partnership remuneration in E2 b (8% of E1) it do not accept. I am wrong in choosing the required form. If so the next form ITR5 is more complicated also ask for different audit report. In fact last year for Ay 2016-17 FY 2015-16 I had filled in ITR4 which had also accepted. Surprisingly Partnership remuneration (E6) shall be deducted only from the Persumptive income of 44AE only not of 44AD (As per the explanation given in the form But instruction ITR 4 sugam is also for Partnership income as per special provision of Sec 44AD and 44AE can any body guide me.

[DR.MARIAPPAN GOVINDARAJAN]

It is hoped that you might have filed the return

AI Summary

Presumptive taxation for partnerships clarifies ITR form choice and partner remuneration treatment under 44AD/44AE provisions. Whether a partnership with turnover within the presumptive threshold should use ITR 4 depends on applicability of the presumptive provisions and treatment of partner remuneration; ITR 4's utility may calculate tax on full profit if partner remuneration is entered in its designated field, and its explanations suggest remuneration is deductible in limited presumptive contexts, so partnerships unable to reflect remuneration under ITR 4 may need to file the more detailed ITR 5 and meet its audit and reporting requirements.