income tax sec 44AD

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sundeep tayal (Querist)
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16 March 2011 Incase of a partnershipfirm,whether salary to parners & int. on capital is deducted from presumtive income calculated u/s 44AD.
IN OTHER WORDS, Whether Tax liability shall be calculated after deducting Salary & Interest on capiatal of partners from the amount calculated u/s 44 AD. Please suggest accordingly.
Thank you

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 March 2011 Yes. Interest on Capital and remuneration to working partner will be deductible from the 8% profit calculated U/s 44AD. The firm has to pay tax on such amount as reduced by these two items.

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