25 March 2009
I am having a profit of Rs.48000/- before partner's salary can I divide the salaries between the two partners 24000/- each and show net profit of zero in Income Tax returns.
25 March 2009
For the purpose of Income Tax, partners salary will be subject to provision of 40(b). wherein the Max. limit of remenuration is specified.
In your case you can do so as not exceeding the amount contains in provision.
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