Income tax

Dear Sir,

- Yes you can take the benefit of presumptive taxation and show atleast income of 8% or more of gross receipts. You can file ITR-4 for the same.

- Partnership firm is liable to pay tax at flat rate of 30% on the declared income. Your tax liability would be 1,60,000 (excl. Interest ) instead of Rs.16,000.

- It would be better to get the books audited.

Thanks

Hi Kanan,

For deduction under section 80G, you need to donate during FY 2017-18.

How will u take 80G now?

Sir,

You can adopt section 44 AD and declare 8% of your turnover as your income. If your income less expenses is less than this 8% then you have to maintain books and get it audited. But the tax rate for partnership firm is 30% plus cess.

Hi

Yes, you can opt for 44AD and show 8% profits. Tax shall be 30% on 540000 plus cess and interest.

For claiming 80G deduction, you must have made the donation in FY 17-18 only. Further, there are different categories of institutions eligible for 80G donation. You need to check with that too. 80G is not always a flat 100% deduction.

Hi

You can take the benefit of 44AD and show 8% profits.

For claiming 80G deduction, you need to ensure that the institution where you are making donation is eligible for 80G donation and also whether you will get 50% or 100% deduction. Have you already donated in the year 2017-18? If yes, you can claim else you cannot claim.

Dear Sir,

Hope you are doing well !

Yes, you can take the benefit of presumption taxation scheme u/s 44AD.

Under Section 44AD, income would be presumed to be 8% of the total turnover.

Under section 80G, there is no defined maximum deduction limit. It all depends on the type of fund or institute you donate and sometimes also to your adjusted gross total income.

For determining exemption limit under section 80G you should classify donation in below 2 categories:

Eligible donation Without any Limit

Eligible donation With Limit of 10% of Adjusted Gross Total Income

Further, there is funds/institute in which 100% of contribution is allowed as deduction whereas in some other funds/institute deduction is limited to 50% of contribution.

Thanks & Regards,

Payal Chhajed

Hi

Yes you can file return under 44 ad. Tax will be flat rate for firm,not slab rate .It is 30% .

For claiming any payment based deduction,you have to make payment in relevant year that means filling return for FY 2017-18 then payment to be done in same year itself (1.april.17 to 31.march.18) So now you can not claim 80 G .(if not paid).

If it is still partnership firm then 44AD not attractive as no deduction of partner remuneration since 2016-17 . You can opt 44AD with no books & audit & show 8% presumptive profit mandatory & can claim 80 G