21 April 2009
Dear Sir/Madam, Please clarify me - what is the maximum renumeration amount the partners can draw from a partnership firm? Advance thks, kind regards, S.Babu.
21 April 2009
The partners can decide to take any amount of remuneration from the business, but the same should be according to the partnership deed, and its allowability in Income Tax Act shall be according to section 40(b) read with section 184. Detailed provision and calculation is given in section 40(b)
22 April 2009
no limit has provided for remuneration. butaccording to IT act remuneration can only be provided to working partner if part deed so proved.