Salary to working partners

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dayesh

dayesh (Querist)
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09 September 2014 Pls guide me how much salary shall be allowed to working partners of partnership firm

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 September 2014 Section 40(b)(v) lays down the limit for remuneration paid to partners as under:

On the first Rs. 3 lakh of the book profit or in case of loss - Rs. 1.5 lakhs or 90% of book profit, whichever is higher

On the balance of the book profit - 60%