Remuneration to Partners

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Hanmantu N.Sai (Querist)
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12 September 2008 Hello,

I have some problem regarding remuneration paid to partners in partnership firm is eligible or not? if the partners are pvt. ltd. companies? then is it ok? please guide.

And we have already filed return showed remuneration to partners (pvt. ltd. companies) for AY 08-09? what will be the next procedure? is it ok according to income tax law?

its urgent.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 September 2008 A partnership firm can pay remuneration to a pvt ltd company. But the remuneration will be assessed in the hands of the individual(mg.director or director) who is representing the company