23 January 2015
Mr X and Mr Y are partner in a firm
in partner ship deed they write like this
Mr X Remuneration 120000 PA & profit ratio 90% Mr Y Remuneration 90000 PA & profit ratio 10% and if deiced or need by the partners then they can reduce or increase the remunerations
now they want file it return U/s 44AD as per calculation U/s 40(b) allowable remuneration is 300000
now can they claim 300000 as remuneration?
and another doubt
if they claim 300000 net profit will be in minus value, but they want to show some profit so i want show remuneration as per deed as a fixed remuneration is it correct
and another doubt
what is remuneration and fixed remuneration as per income U/s 44AD
23 January 2015
1. The remuneration can not exceed the amount mentioned in the deed. . 2. Any change in the fixed amount mentioned in the deed can be made by executing a Revised Partnership Deed. . 3. Please check the Deed, whether it allows remuneration as per Section 40(b). . 4. In my view, the situation of loss will not arise, if remuneration of Rs. 300000/- is being arrived by following S40(b). . 5. Profit to be declared U/s 44AD in the following manner- 1. Turnover x 8% 2. Less: Interest on capital to partners 3. Less: Remuneration to Partners. .
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