19 August 2012
In computation of Book Profit ,which expenses and incomes should be allowed and Disallowed for providing Remuneration to Partners as per calculation given in sec 40(b)?
What if , Net Profit as per books=1,00,000 It is arrived after deducting/adding following expenses and Incomes- 1.Donation -5,000 2.Loss on sale of Asset -25,000 3.Profit on sale of Investment -15,000 4.TDS not paid till the due date of Return filing-2,000 5.Depreciation as per Books-34,500 6.Dividend of Rs. 5,000
Note: 1.No remuneration is already paid to partners and interest is paid subject to 12% only. 2.Depreciation as per IT Act is Rs.43,500 3.Unabsorbed Depreciation -75,000 4.Brought Forward Business Loss -1,35,000
Please provide maximum allowable remuneration as per sec 40(b).
CAclubindia
