Partners salary

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Querist : Anonymous (Querist)

28 April 2016 maximum salary , bonus commission can be paid to partners in the case of loss of firm .

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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28 April 2016 Remuneration u/s 40(b)
On the 1st 3 Lakhs of the Book Profit or In case of Loss Rs. 1,50,000/- or 90% of the Book Profit w.e. is more on balance Book Profit 60% of Book Profit
Explanation 3 to section 40(b) defines “book-profit” as to mean the net profit, as shown in the profit and loss account for the relevant previous year, computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit.