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Applicability of section -44ad

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Querist : Anonymous (Querist)
08 August 2011 SECTION -44 AD IS APPLICABLE ON PARTNERSHIP FIRMS OR NOT ?

IF APPLICABLE THEN PROFIT BEFORE PARTNER SALARY & INTT. OR AFTER PARTNER SALARY & INTT. WILL BE CONSIDERED FOR SECTION-44AD ?
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
08 August 2011 Turnover below 60.00 lakhs. Business Firms only.

Section 44AD is applicable.

Turnover say Rs 50.00 lakh.
.
Income U/s 44AD @ 8% 4.00 Lakh
.
Interest to Partner 1.20 lakh
.
Book Profit 2.80 lakh
.

Provide remuneration on above basis.
Here it can be up to 90% of 2.80 lac.
.
Balance will be Net Profit of the firm.
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CA CS CIMA Prakash Somani

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CA CS CIMA Prakash Somani (Expert)
08 August 2011 For calculating the limit interest on partners salary not to be deducted



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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
08 August 2011 Prakashji,

What is the use and meaning of Interest on Partner's Salary and for which limit ?

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