Partner's remuneration
This query is : Resolved
17 May 2016
Is there any limit on payment of remuneration to Partners??. Under which head, partner has to show in his personal computation ??..
17 May 2016
Yes limits are set out under section 40b(v) any excess payment will be deemed to be the income of the firm. Partner shall show remuneration under the head income from business or profession.
17 May 2016
Yes,u/s 40(b)(v) deduction allowed within the percentage prescribed based on book profit.
Upto 3 lakh book profit or loss . Salary allowed Rs.150000/-@ 90% of profit which ever is higher.
Balance @ 60%. Of book profit allowed as salary to partners.
Partner has to file ITR -3. Separate column to declare salary, share of profit and interest on capital. Same will be taxable if exceed taxable limit.
Upto 3 lakh book profit or loss . Salary allowed Rs.150000/-@ 90% of profit which ever is higher.
Balance @ 60%. Of book profit allowed as salary to partners.
Partner has to file ITR -3. Separate column to declare salary, share of profit and interest on capital. Same will be taxable if exceed taxable limit.
17 May 2016
as per Income Tax Act 1961 ,u/s 40(b)(v) deduction allowed within the percentage prescribed based on book profit.
Upto 300000 book profit or loss . Salary allowed Rs.150000/- @ 90% of profit whichever is higher.
Balance @ 60%. Of book profit allowed as salary to partners.
19 May 2016
How will be excess amount treated both in Firm & Partner case ??..
19 May 2016
Excess amount issued as salary will be disallowed and same will be taxable in the hands of Firm.
19 May 2016
And what if salary issued is more than one mentioned in partnership deed??
20 May 2016
How will partner treat excess amount received from firm (more than allowed as per sec 40b) in his personal ITR??
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
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
