Residential house rent of partner
This query is : Resolved
24 April 2018
RESPECTED SIR,
THERE ARE 4 PARTNERS IN A PARTNERSHIP FIRM. THE FIRM HAS MADE AN AGREEMENT FOR RESIDENTIAL HOUSE OF ONE OF IT'S PARTNER.
CAN THE FIRM DEBIT THE AMOUNT OF HOUSE RENT IN IT'S PROFIT AND LOSS ACCOUNT ? WILL IT BE ALLOWED AS A DEDUCTION BY THE INCOME TAX DEPARTMENT ?
PLEASE GUIDE ME
THERE ARE 4 PARTNERS IN A PARTNERSHIP FIRM. THE FIRM HAS MADE AN AGREEMENT FOR RESIDENTIAL HOUSE OF ONE OF IT'S PARTNER.
CAN THE FIRM DEBIT THE AMOUNT OF HOUSE RENT IN IT'S PROFIT AND LOSS ACCOUNT ? WILL IT BE ALLOWED AS A DEDUCTION BY THE INCOME TAX DEPARTMENT ?
PLEASE GUIDE ME
24 April 2018
Yes, the amount paid as rent to a partner for using his house for the business, as a part of the agreement, will be allowed as a deduction in the hands of the firm.
The amount paid must not be unreasonable and excessive so as to attract disallowance under Section 40A(2).
The amount paid must not be unreasonable and excessive so as to attract disallowance under Section 40A(2).
24 April 2018
Yes... The Firm take the Residential house on Rental basis then the Firm will give rent to the Partner also account it in Rent Paid head in the books of accounts...
It's acceptable under income Tax...
25 April 2018
Whatever rent paid in the firm name, If TDS applicable u/s 194I same to be deducted in order to claim rent as expenses.
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- 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 Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
