A firm have two partner one is working and another is sleeping partner. for the financial year 2015-2016 firm earned profit of rs. 50 lac. As per Sec 40ab remuneration is payable to working partner only. Then please tell me that whole remuneration calculated as per Sec 40ab payable to only working partner or divided 2 and paid to working partner only. eg Remuneration as per above is 3110000/- can we pay whole amount to working partner or we have to divide by 2 and pay 1555000/- to working partner only.
02 May 2016
The aggregate amount computed in this case is 31,10,000. This is for the firm as a whole. The same may be paid out to all working partners in aggregate. Here, the working partner is one, so the entire amount may paid to him.
Note: The remuneration / salary must be authorised by the deed of partnership. Check the provisions of the deed.
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