Applicability of Section 44AD for Partnership Firm

This discussion examines whether Section 44AD of the Income Tax Act is applicable to a partnership firm with a turnover of 60 lakhs where profit is reduced to nil by partner remuneration and interest on capital. The query questions if presumptive profit under 44AD should be calculated before these expenses. Responses suggest that 44AD profits are typically calculated after such expenses, meaning the firm likely won't qualify for 44AD and will need to conduct a tax audit under Section 44AB due to Section 40(b) implications.