Question about 44ad

Rahul M Matang (CA Final) (53 Points)

12 July 2017  

I am partner in a firm.Suppose the firm's turnover For the F.Y. 2016-17 is Rs.48,00,000/-.

Net Profit before interest tp partner and salary is 9,00,000/- LAKHS

Now if i want to file return under 44AD i will have to Pay tax on Rs. 2,88,000/- (i.e,6% of 48 Lakhs).

So can i give interest and remuneration to partner for the balanced amount of Rs.6,12,000/- (9 Lakhs - 2.88 Lakhs) to make my profit as per section 44AD ?
As in section 44AD it is mentioned that no salary or interest is allowed as deduction, does it mean that we can not deduct salary and interest from 2.88 Lakhs and can only deduct from 9 Lakhs or does it mean that we cannot at all give remuneration or interest to partner in case we are opting for 44AD and i will have to pay TAX ON RS. 9 Lakhs ?