Pgbp

This query is : Resolved

Praveen M (Querist)
Follow

03 July 2015 Dear all,

I have some queries relating to sec 40(b) which are as follows.
1) How to calculate remuneration payable to working partners If book profit is in negative.
2) If partnership deed state that interest payable to partner is 8% then can assesses claim 12% which is as per Income Tax Act.
3) Interest of 12% is on which capital(fixed or fluctuating capital)

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
Follow

03 July 2015 1) Even in case of loss limit on remuneration is Rs.1,50,000 .
2) No, only 8% will be deductible.
3) Interest will be allowed on the capitals as per the partnership deed fixed or fluctuating.