Remmuneration to Partner

This query is : Resolved

Milind Nadkarni (Querist)
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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.

Regards
Milind

Ravikant

Ravikant (Expert)
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20 July 2011 Income tax act will override the clause of the partnership deed, no need to amend the deed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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