can we add and use Azure AD P1 with M365 Business basic and standard?

Here you go: https://docs.microsoft.com/en-us/azure/active-directory/fundamentals/active-directory-whatis
To enhance your Azure AD implementation, you can also add paid capabilities by upgrading to Azure Active Directory Premium P1 or Premium P2 licenses. Azure AD paid licenses are built on top of your existing free directory, providing self-service, enhanced monitoring, security reporting, and secure access for your mobile users.