Partners salaries and interest sec 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2016 Dear Experts
I am eligible for sec 44AD pls tell me weather partners interest and salaries is allowed for AY 2016-17 or not,

Regds
SUMAN

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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26 November 2016 Yes, you can claim partner salary and interest as allowed deduction from Income computed under 44AD for Ay 2016-17, such deduction subject to condition and limits specified u/s 40(b),
From AY 2017-18. Provisions in respect provided u/s 44AD(2)has been deleted by finance act 2016, so all the expenses are deemed to be deducted u/s 44AD no further deduction allowed even Internet, salary or remuneration paid to partners.