Find
A resident partnership firm, other than an LLP, can use Sec 44AD and file ITR-4 if it meets the limits. Under the presumptive scheme, salary and interest paid to partners are not deducted separately from the presumptive income.
ITR
Partnership firm filing ITR-4
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 44AD (now Sec 58); Sec 40(b), Income-tax Act 1961
Analysis
On ₹1,20,00,000 of mostly digital turnover, presumptive income is at least ₹7,20,000, taxed at the firm's flat rate of 30% plus cess. Partners' salary of ₹6,00,000 cannot be deducted from this. If partners' remuneration matters a lot, compare with keeping books and filing ITR-5. An LLP must use ITR-5 and cannot use 44AD.
Close
- Confirm the firm is not an LLP and meets turnover limits
- Compute presumptive income without deducting partners' salary
- Compare tax with the books route
- File ITR-4 for the firm by the due date
The 2025 Act number for Sec 40(b) is not confirmed in our mapping; cite the 1961 section for past years.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.