20 July 2011
As per new provision of Income Tax Act the limit of remuneration allowed to partners is increased. My querry is whether the partnership deed is also required to be amended to avail the benefit of additional remuneration.
20 July 2011
The wordings in section 40(b)(v) is ..... in accordance with the terms of the partnership deed...... which means the new provsions should be included in the partnership deed to avail the deduction at the enhanced rate.
CAclubindia
