TaxTMI 
TaxTMI 
Presumptive Tax
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....resumptive Tax<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 1-5-2021 Last Reply Date:- 11-5-2021 Income Tax<br>Got 2 Replies<br>Income Tax<br>As per section 44AD, even a partnership....
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.... firm can avail the benefit of presumptive tax. In view of omission of proviso to section 44AD(2), 6% or 8% of turnover will be treated as taxable profit after giving effect to remuneration and inter....
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....est on capital of partners. Let us assume 6% of turnover of a firm works out to ₹ 10 lakh. In such a situation, whether working partners have to offer salary which is deemed to have been allowe....
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....d as income in their hands. If yes, how to arrive at the same. Reply By shwetal oswal: The Reply: Yes, we have to distribute salary to the working partners of that much amount, after which net profi....
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....t of the firm works out to ₹ 10 lakhs. Reply By ARVIND JAIN: The Reply: It is advisable to go for Tax Audit as Book profit before partner remuneration would be too high if we consider NP as pe....
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....r Section 44AD . No Audit is advisable only in case real profit is so high to cover up remuneration and book profit.<br> Discussion Forum - Knowledge Sharing ....