sec: 40a
This query is : Resolved
Guest
Guest
(Querist)
12 February 2010
For the A.Y. 2009-10
Is 50000 is to be paid as remuneration to partner in case of loss also
I think Yes.
Is 50000 is to be paid as remuneration to partner in case of loss also
I think Yes.
13 February 2010
Finance (No. 2) Act, 2009 with effect from 1-4-2010 Substituted it as Rs. 150,000 as the maximum deductible amount of remuneration in case the firm has losses.
Message likes :
1 times
13 February 2010
I am sorry but this section is 40(b) and you are right that according to that section Rs. 50,000 are allowed even in case of Loss.
as it said in this section upto Rs. 75,000 remuneration is allowed 90% or Rs. 50,000 (whichever is higher)
Regared!!!
Dinesh S. Adhikari
as it said in this section upto Rs. 75,000 remuneration is allowed 90% or Rs. 50,000 (whichever is higher)
Regared!!!
Dinesh S. Adhikari
Message likes :
1 times
13 February 2010
I agree with Mr. Dinesh S Adhikari. sec 40(b) will be applicable and 50,000/-is eligible for payment in case of loss.
Message likes :
1 times
13 February 2010
I am sorry experts. But please correct me if my interpretation is wrong. Section 40(b) as given is pasted below.
I took the reference of this only and the interpreted that Rs 50,000 is amended by 2009 Amendment and w.e.f from 1-4-2010 Rs. 150,000 is applied.
Although, I may be wrong in viewing that Rs. 50,000 is applied in AY 2009-10 and Rs. 150,000 will be applied in AY 2010-11. Is it so? Please throw some light on this.
Section >
40. Notwithstanding anything to the contrary in sections 30 to 67[38], the following amounts shall not be deducted in computing the income chargeable under the head Profits and gains of business or profession,
[(b) in the case of any firm assessable as such,
(i) any payment of salary, bonus, commission or remuneration, by whatever name called (hereinafter referred to as remuneration) to any partner who is not a working partner; or
(ii) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is not authorised by, or is not in accordance with, the terms of the partnership deed; or
(iii) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is authorised by, and is in accordance with, the terms of the partnership deed, but which relates to any period (falling prior to the date of such partnership deed) for which such payment was not authorised by, or is not in accordance with, any earlier partnership deed, so, however, that the period of authorisation for such payment by any earlier partnership deed does not cover any period prior to the date of such earlier partnership deed; or
(iv) any payment of interest to any partner which is authorised by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as such amount exceeds the amount calculated at the rate of 85[twelve] per cent simple interest per annum; or
86(v) any payment of remuneration to any partner who is a working partner, which is authorised by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as the amount of such payment to all the partners during the previous year exceeds the aggregate amount computed as hereunder :
(1) in case of a firm carrying on a profession referred to in section 44AA or which is notified for the purpose of that section
(a) on the first Rs. 1,00,000 of Rs. 50,000 or at the rate of the book-profit or in case 90 per cent of the book- of a loss profit, whichever is more;
(b) on the next Rs. 1,00,000 of at the rate of 60 per cent; the book-profit
(c) on the balance of the at the rate of 40 per cent; book-profit
(2) in the case of any other firm
(a) on the first Rs. 75,000 of Rs. 50,000 or at the rate of the book-profit, or in case 90 per cent of the book- of a loss profit, whichever is more;
(b) on the next Rs. 75,000 of at the rate of 60 per cent; the book-profit
(c) on the balance of the at the rate of 40 per cent: book-profit
The following items shall be substituted for the existing items (1) and (2) of sub-clause (v) of clause (b) of section 40 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :
(a) on the first Rs. 3,00,000 of the book-profit or in case of a loss
Rs. 1,50,000 or at the rate of 90 per cent of the book-profit, whichever is more;
(b) on the balance of the book-profit
at the rate of 60 per cent :
I took the reference of this only and the interpreted that Rs 50,000 is amended by 2009 Amendment and w.e.f from 1-4-2010 Rs. 150,000 is applied.
Although, I may be wrong in viewing that Rs. 50,000 is applied in AY 2009-10 and Rs. 150,000 will be applied in AY 2010-11. Is it so? Please throw some light on this.
Section >
40. Notwithstanding anything to the contrary in sections 30 to 67[38], the following amounts shall not be deducted in computing the income chargeable under the head Profits and gains of business or profession,
[(b) in the case of any firm assessable as such,
(i) any payment of salary, bonus, commission or remuneration, by whatever name called (hereinafter referred to as remuneration) to any partner who is not a working partner; or
(ii) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is not authorised by, or is not in accordance with, the terms of the partnership deed; or
(iii) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is authorised by, and is in accordance with, the terms of the partnership deed, but which relates to any period (falling prior to the date of such partnership deed) for which such payment was not authorised by, or is not in accordance with, any earlier partnership deed, so, however, that the period of authorisation for such payment by any earlier partnership deed does not cover any period prior to the date of such earlier partnership deed; or
(iv) any payment of interest to any partner which is authorised by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as such amount exceeds the amount calculated at the rate of 85[twelve] per cent simple interest per annum; or
86(v) any payment of remuneration to any partner who is a working partner, which is authorised by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as the amount of such payment to all the partners during the previous year exceeds the aggregate amount computed as hereunder :
(1) in case of a firm carrying on a profession referred to in section 44AA or which is notified for the purpose of that section
(a) on the first Rs. 1,00,000 of Rs. 50,000 or at the rate of the book-profit or in case 90 per cent of the book- of a loss profit, whichever is more;
(b) on the next Rs. 1,00,000 of at the rate of 60 per cent; the book-profit
(c) on the balance of the at the rate of 40 per cent; book-profit
(2) in the case of any other firm
(a) on the first Rs. 75,000 of Rs. 50,000 or at the rate of the book-profit, or in case 90 per cent of the book- of a loss profit, whichever is more;
(b) on the next Rs. 75,000 of at the rate of 60 per cent; the book-profit
(c) on the balance of the at the rate of 40 per cent: book-profit
The following items shall be substituted for the existing items (1) and (2) of sub-clause (v) of clause (b) of section 40 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :
(a) on the first Rs. 3,00,000 of the book-profit or in case of a loss
Rs. 1,50,000 or at the rate of 90 per cent of the book-profit, whichever is more;
(b) on the balance of the book-profit
at the rate of 60 per cent :
18 February 2010
agree with Dinesh S Adhikari.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
