Deduction of partner remuneration u/s 44ada

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2017 Whether deduction for partner's remuneration & interest is available to firm , if firm opts for presumptive taxation under section 44ADA of the Income Tax Act, 1961.
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CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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26 July 2017 NO if Firm opts for section 44ADA no deduction is allowed for partner's remuneration or interest on capital because section starts with "Notwithstanding anything contained in section 28 to 43C..." i.e. if assessee opts for presumptive taxation under 44ada no deduction is allowed u/s 28-43C and partner's remuneration and interest on capital comes under section 40.