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Presumptive income schemes of 44AD , 44ADA and 44AE are also applicable to partnership business
However, if these schemes claimed, then we cannot claimed deductions for partners salary and interest
Q1
Suppose a Partnership firm has turnover of 80 lacs ( 20 lacs cash rest in bank)
What is its business Income
How much Income tax he is payable by it?
Answer
| Particulars | CASH | BANK | TOTAL |
| TURNOVER | 2000000 | 6000000 | 8000000 |
| PROFIT % | 8% | 6% | |
| PROFIT | 160000 | 360000 | 520000 |
| PROFIT | 520000 |
| TAX | 156000 |
| SURCHARGE | 0 |
| TAX+SURCHARGE | 156000 |
| CESS 4% | 6240 |
| TOTAL TAX+CESS | 162240 |
Q2
Can it pay Interest and Salary to Partners to reduce its tax liability?
Answer
Yes in f.Y 2015-16
If we are claiming 8%,6% profit ,we cannot claim deductions for different expenses under Section 30 to 38.
But we can claim other deduction like Section 40 (b) Deduction for partners.
No from F.Y 2016-17 onwards till date
If we are claiming 8%,6% profit ,we cannot claim deductions under Section 30 to 38.
and we also cannot claim other deduction like Section 40 (b) Deduction for partners.
