07 January 2013
A Partnership firm was started in the year 2008 with business of trading of electrical equipment's & renting shopping complexs. Income from electrical equipment is treated as business income where as income from rent is treated as income from H.P.
Since 2010, they stopped trading of electrical equipments. the only income is from renting of Shopping complexs & it is treated as income from H.P.
MY QUERY is whether the partners can take remuneration even though there are no business activities.
10 January 2013
please refer article by Amit Bajaj on this WEB (https://www.caclubindia.com/articles/-provisions-of-section-40-b-of-income-tax-act-1961-8658.asp#.UO6u0qxYWSo)
I guess this shall be enough to clarify your doubts
CAclubindia
