Rent paid by firm on behalf of partner for residence of part
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 September 2015
Is rent paid by firm on behalf of partner for the residence of partner & his family will allowable as deduction under income tax act in the books of the partnership firm, please confirm. Note :- Rent Agreement is between landloard & the partnership firm (& not with partner).
25 September 2015
It is in the nature of personal expenditure of the partner. This is not deductible as per section 37 of the IT Act.
Moreover as per Section 40(a) and 40A only remuneration (subject to limits specified) and interest on capital (up to 12%) if the same are as per the terms of the Partnership Deed, then only those two are allowable in Income Tax Act. No other expenditure of personal nature is deductible.
Moreover as per Section 40(a) and 40A only remuneration (subject to limits specified) and interest on capital (up to 12%) if the same are as per the terms of the Partnership Deed, then only those two are allowable in Income Tax Act. No other expenditure of personal nature is deductible.
25 September 2015
if instead of firm co is paying rent for its directors residence then what would be the scenario sir??
25 September 2015
Company cannot pay for a non-executive director, if paying, shall be treated as personal exp. and is disallowed.
In case of executive director and the payment is as per terms of employment, then, will be treated as perquisite. Valuation of perquisite rules are applicable.
In case of executive director and the payment is as per terms of employment, then, will be treated as perquisite. Valuation of perquisite rules are applicable.
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 October 2015
Can Rent paid for Gust House taken on lease (Rental basis) for the stay of the partners of the firm be allowed as expenses in the books of the firm, please suggest.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST Regis.
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
