section 40 b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2010 Book profit after giving interest to partners - 80000
In 40b salary = (90% of 80000) or 150000 , whichever is more .
So salary will be 150000 ,then there will be loss.Plz tell me can we give salary of 150000 and loss of 70000 or salry will be 80000 and there will be no profit no loss.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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08 July 2010 Both the options are possible.
If the partners decide that remuneartion should be restrcited to profit then second option otherwise first. Also the partnership deed should be seen in this case whether remuneration restricted to profit or even loss possible.