08 October 2019
In a partnership firm, there are two partners. Their profit division ratio is equal. Every year they get remuneration and interest on capital. Last year, one of the partner was more active in partnership business and devoted more time. Partnership firm and other partner want to give him salary apart from remuneration and interest. As per Income Tax Act, Is there any restrictions on this. If yes, then under which section. Please guide. With regards Subhash
08 October 2019
No specific section for payment. But such payment is restricted u/s 40(b) of the IT Act,1961 for giving deduction as business expenditure.
CAclubindia
