Partnership fim

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Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2012 whether salary paid to partners in cash is allowed or not? I am confuse about it....

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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24 December 2012 Why it won't be allowed. However same should be within the constraints of S. 40A (3) and 40(b).

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Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2012
it exceeds 20000... then not allowed ??? is it??

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CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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24 December 2012 Yes. This is the overriding constraint of S. 40A(3)

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CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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25 December 2012 Dear Friend, in case of salary & wages the provisions of Rules 6D of the Income Tax Act, 1961 give us some liberty. Salary & wages to employee cane be paid in cash. Salary paid to partners of a firm in cash will be allowed as deduction but subject to provisions of Rules 6D. Thanks

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Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2012 Is it necessary to deduct tax while paying salary to partner? salary amt.after deducting epf is below rs.20000/- p.m.?

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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25 December 2012 Deepak Ji, I don't think Rule 6D is in force. It has been omitted.
Dear Querist, No TDS is required u/s 192 since salary is not chargeable under the head "Salaries"

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Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2012 thank you sir....

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