17 October 2009
As per the new provisions,limits set in section 40(b)(v) is enhanced.Will the amendment have retrospective effect from 01-04-2009 so that the revised limits can be incorporated in the deed of partnership at any time during the previous year 2009-10?
17 October 2009
The amendment will take effect from April 1,2010.i.e., in relation to assessment year 2010-11 and subsequent years. As regards the payment at the enhanced rate, if the provision is incorporated in the instrument of partnership at any time during the previous year 2009-10, benefit can be availed only from the date of execution of the deed because of the proviso to section 40(b).
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