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
  1. Practical Income Tax
  2. Income Tax for Small Business
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .