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
No, it can show Profit less than 2000000, for showing Profit less than 50% of Turnover than compulsory audit is required
O2 Can it show Loss?
View answer
For showing Loss , compulsory audit is required.