Please tell, interest and remuneration received from partnership firm is taxable for that partner and it is deductible for firm ? If firm have disallowed this expenses through add-back process, then it is required to mention this in partners return ? I think if mentioned, there is twice payment of tax for interest and remuneration portion
As per Sec 40b the excess amount needs to be disallowed i.e. needs to be added back to the Partnership Firm.
Once that is Done, to the extent of the Amount of Expenditure allowed to the Partnership firm shall become the Income of the Partner regardless of How much was Actually paid to Such Partner/s
Thank You,
Regards CA. Lohith.J B.Com,ACA,CS(ICWA),SAPM Hons,ITF Hons
If you have any issues, please do join my community " Lo Aca " so that there are other partners of mine who would be able to assist you to resolve your doubts.
Thank You,
Regards CA. Lohith. J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
CAclubindia
