Applicable for Financial Year 2016-17 (AY 2017-18)

IF Gross Receipts(Professional) of a partnership firm is upto 50 lac

  • 50% of Receipts will be Profit as per Sec. 44ADA
  • No need for Audit
  • No need to maintain books of accounts

If Professional says that his profit less than 50%,then compulsory books of accounts and compulsory audit

 

For Example

  • Total Gross Receipt of a Partnership Firm is 40 lac calculate
  • It's Profit as per section 44ADA

Answer

Particulars Amount
TURNOVER 4000000
PROFIT % 50%
PROFIT 2000000
PARTICULARS AMOUNT
PROFIT AND GAIN OF BUSINESS AND PROFESSION 2000000
(MINIMUM 50% OF TURNOVER)  
GROSS TOTAL INCOME 2000000
TAXABLE INCOME 2000000
TAX 30% 600000
Surcharge @ 12% 0
Tax + Surcharge 600000
Cess @ 3% 18000
Total Tax including Cess 618000

 

Q1 Can it Show its Profit less than 2000000 under 44ADA Scheme?

View Answer

O2 Can it show Loss?

View Answer
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.