08 June 2010
IN A PARTNERSHIP DEED IT IS WRITTEN THAT REMUNERATION TO THE WORKING PARTNERS SHALL BE GIVEN AS PER PROVISIONS OF THE INCOME TAX ACT.WHETHER THE REMUNERATION CAN BE GIVEN LESS THAN THE ELIGIBLE REMUNARTAION. SINCE FIRM WANTS MORE INCOME IN ITS HANDS.
08 June 2010
Limits are for max remuneration and therefore firm can pay any amount less thn prescribed limit.
U may also note that the exp is technically disallowable as the deed must specifically mention the limits... ambiguous terms like limits as per income tax act sec 40 (b) are not allowed.
CAclubindia
