Regarding Section 40(b)

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sandip (Querist)
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10 January 2011 As per Section 40(b) Remuneration to partner should not excess of allowed under Income tax Act, but when remuneration paid to partner( Actual payment to partner ) was lower & allowed remuneration ( As per Income Tax Act allowed ) was greater than paid remuneration then what amount will be taken in computation of income partnership firm ?

Guest

Guest (Expert)

10 January 2011 Please clarify the terms 'remuneration paid to partner' and 'allowed remuneration'.

sandip

sandip (Querist)
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12 January 2011 Remuneration paid to partner means actual payment and allowed remuneration means as per Income tax Act.

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Guest

Guest (Expert)

13 January 2011 Remuneration to partners shall be allowed subject to maximum limit provided u/s 40(b) and the remuneration credited/paid to partners, which ever is less.