Hi
A firm (eligible for 44AD) is not opting for 44AD has income above 8%.(turnover 1000000 , profit 100000)
However, after interest and remuneration, it is a loss.[100000profit -12000interest -150000 remuneration=(62000)loss]
[Due to omitting of the proviso to section 44AD(2) the salary and interest paid to its partners shall not be allowed to be deducted from the income computed under sub-section (1) of section 44AD.]
Will this loss be allowed? or will the firm be forced NOT to claim the interest and remuneration?
CAclubindia
