Int,salary to partners of a firm having rental income only

This query is : Resolved

D R Meharwade (Querist)
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23 June 2018 Can interest on capital and remuneration be given to partners of a partnership firm having only rental income?
As rental income is reduced from business income and taxed under Income from house property after standard deduction of 30%, can further expense of interest on capital and remuneration to partners be claimed as deduction?

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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23 June 2018 You can claim partner remuneration & interest because you will have loss in PGBP & Income in House property and it can be set off with each other

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 June 2018 If the firm has rental income only, deduction u/s 40(n) can't be claimed. If composite income, then such deduction can be claimed against business profit subject to the
provisions in the Partnership Deed.

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