31 July 2010
Since we all know that the limits under section 40(b) has been raised for the F.Y. 2009-10. Because of this amendment, all the partnership firms has to prepare a Supplimentary Deed to give effect of such change in the section.
Since, one of the Conditions for the apllicability of said section is that the period of allowing the remuneration to the working partners must be authorised by the partnership deed.
Now my query is that, if a partnership firm is preparing the supplimentary deed on the last day of F.Y. 2009-10 and giving effect of the change in sec. 40(b) retrospectively w.e.f. 01/04/2009.
whether the said supplimentary deed is valid in the law?
CAclubindia
