Section 44 ad (8%)

This query is : Resolved

Ishfaq AHMAD WANI (Querist)
Follow

10 March 2016 sir/ madam
i have file the ITR under sec 44ad with net profit 8 % on the gross amount below one crore. I have taken interest and salary of the partners and deduct it from the profit. Interest and salary of the partners should be deducted on net profit when we file ITR u/s 44ad. kindly confirm me with as per income tax act 1962

Ankur Singhal

Ankur Singhal (Expert)
Follow

10 March 2016 Dear
yes you can deduct interest am d salary given to partners from the profit calculated @8%.
But interest and salary should be in accordance with section 40b of income tax act, 1961