Remuneration to partner

This query is : Open

Aditya Maheshwari (Querist)
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12 July 2009 The rate of distribution of salary has been increased in the budget for the current year. However there is one problem in the same that amendment in the partnership deed will be required as per section 40(b) of the Income Tax Act but as per Income Tax Act the alteration in the deed will be prospective. So how the enhanced remuneration will be available for the entire year?

NITIN

NITIN (Expert)
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13 July 2009 In case if it is specified in the partnership deed that remuneration , salary are paid to partners as per sec 40(b) without giving gifures that above said amendment does not affect otherwise your are require to change deed. However upto date of new deed remuneration is calculate as per curent deed

Aditya Maheshwari

Aditya Maheshwari (Querist)
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14 July 2009 As per the provisions of income tax act any amendment in the partnership deed will be prospective and therefore will apply from the date of alteration and not 01.04.2009? So what should be done?

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