Under section 44AD from if the Turnover of an assessee being resident individual, HUF, Partnership Firm (not being a LLP) and who is not claiming deduction under section 10A, 10AA, 10B &10BA or deduction under Chapter VI A under the heading ‘C -Deductions in respect of certain Incomes’ and derives income from any business except business in respect of plying, hiring or leasing goods carriages referred to in section 44AE is less than Rs. 2 Crores, then 8% of the turnover shall be deemed to be the income from Business, unless he declares more than that and any deduction allowable under sections from 30 to 38 shall deemed to have been allowed. Up to AY 2016-17 in the case of Firms interest and salary were specifically allowed as deduction subject to limits specified under section 40(b). After AY 2016-17, the amendment made by Finance Act, 2016 to disallow deduction of expenditure in the nature of salary, remuneration, interest paid to the partner as per section 40(b) out of presumptive income will be applicable.
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