Section 44AD: Treatment of Partner Salary & Interest

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  1. TANU23

    TANU23 New Member

    How to check whether Section 44AD is applicable in case of partnership firm or not? Do we consider the profit arrived after allowing partner salary & interest as an expense for the purpose of checking whether the profit is 8% or more or not ? or Do we need to add back the partner salary & interest in the net profit of partnership firm ?
    Please Explain.
    Thanks in anticipation
  2. rudrabose

    rudrabose Active Member

    The salary and interest paid to partners is allowed to be claimed as an expense from the 8% profit
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