Partners remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 if the partnership firm has a profit of Rs 20,00,000 before remuneration to partners, if we give the partners remuneration as per partnership deed and Income tax act therefore maximum remuneration paid to partners is Rs1290000. i want to know that we can give the partners remuneration less than Rs 1290000, i know that the maximum limit but is their any minimum limit to the partners for their remuneration, we can give the minimum remuneration to the partners or not

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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17 September 2012 There is no law regarding minimum remuneration to partners, however, if the deed provides for the same, the clause of the deed would prevail.

Prakash Kochar

Prakash Kochar (Expert)
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18 September 2012 Remuneration or commission payable to partner depends on terms and conditions agreed for the period under consideration.In any case, allowable remunaration can not exceed the amount prescribed u/s. 40(b).

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