In case of a partnership firm covered by presumptive taxation u/s 44AD of the Income tax Act, will the allowable remuneration be calculated having regard to the actual book profits or as per the presumptive profit of 8%??
Prima facie it should be as per the actual book profits since the proviso to 44AD(2) specifies the limit laid down in section 40(b), but in that case the firm would be actually required to maintain the books of accounts for this limited purpose although the same is not warranted as per the provision.
Please let me know your thoughts.
CAclubindia
