Salary to partners

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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2014 CAN A FIRM GIVE SALARY OR CHANGE THE RATIO OF SALARY, EVEN IF IT (THE SALARY) IS NOT DEFINED IN THE DEED?

CA Rinkal

CA Rinkal (Expert)
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24 June 2014 yes

the firm can pay any amount of salary to their partner subject to limit of income tax u/s. 40(b)

Rupesh Jain

Rupesh Jain (Expert)
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24 June 2014 salary given to Partner will allowed if it is not mention in partner sheep deed . you can change the deed as you want with mutul consent of partners.

under income tax act you can pay remuneration to partner u/s 40(b) in this section limit of remuneration is given. payment give to exceed from this is disallow.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2014 AN EXAMPLE

A FIRM IN A.YR 13-14 HAS GIVEN SALARY TO
THE TUNE OF 96000.00 TO EVERY PARTNER , BUT IN THE DEED THERE IS WRITTEN 48000.00 OF SALARY TO BE PAID TO THE PARTNERS . WHETHER IN THIS SITUATION THE EXCESS SALARY PAID TO PARTNERS BE DISALLOWED ?