Is Remuneration to Partners allowed under Section 44AD?

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  1. JRSHAHCA

    JRSHAHCA New Member

    Is remuneration to partners allowed u/s 44AD. If the turnover is say Rs. 2000000/- Profit Rs 600000/-. Can he get deduction of Rs. 450000/- remuneration and pay tax on Rs 150000/- @ 30%?
     
  2. Karan Batra

    Karan Batra Well-Known Member

    Yes, Remuneration to partners is allowed under Section 44AD subject to conditions mentioned in Section 40(b)
     
  3. KRANTI BHANDARI

    KRANTI BHANDARI New Member

    Can a Partner of a firm, who having income from two sources ONE being remuneration from the partnership business and ANOTHER from his sole proprietorship business , file his return u/s 44 AD for whole returned income i.e can the remuneration and interest received be shown u/s 44 AD with whole 100%(>8%) being the business income and for the propitiatory business 60%(>8%) being income and 40% being deduction for expenses.
    Because if it is not possible then return would be filed in ITR4 instead of ITR4s, hence Balance sheet and P&L would be required to be filed.
     
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