can an assessee claim deductions if he has opted to pay tax u/s 44AD i.e Presumptive taxation?
what all deductions can he claim?
CA Mukesh Jain S
(Chartered Accountant in Practice)
(692 Points)
Replied 20 March 2013
According to sec 44AD the assessee can't claim any deduction of any expense. Any deductions allowable for expenses u/s 30-38 is deemed to have already been allowed. Hence no further deductions can be claimed under under the head profits & gains of Business. How ever where the assessee is a firm the salary and interest paid to its partners, is allowable .
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 21 March 2013
How ever where the assessee is a firm the salary and interest paid to its partners, is allowable .subject to sec 40(B)
interest
12% or paid whichever is lower
salary paid to partner
a)on the first Rs.3,00,000 of the book-profit or in case of a loss Rs.1,50,000 or at the rate of 90 per cent. of the book-profit, whichever is more;
(b) on the balance of the book-profit at the rate of 60 per cent.
or paid whichever is lower
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