CA sumeet bhojak (Chartered Accountant) (99 Points)
14 September 2010Section 40 b(remuneration clause) of I.T Act has been amended by Finance Act 2009(2).
Q.1) How to compute the total remuneration allowable as on 31st March,2010 if new deed amending the remuneration clause has been registered with effect from 1/10/2009.
Q.2) If the assesse(firm) has a stamp paper with date prior to 01/10/2009 ie,befor passing of the Finance bill which made the amendment can it claim remuneration from that date which is prior to the amendment.
Sunshine
(Helping All)
(10575 Points)
Replied 14 September 2010
AS PER SEC 40(b).......
pay interest on capital which can be maximum allowed @ 12%...
then from the remaining profit u have to give remuneration...
its maximum limit is calculated as follows...
1st 3 lacs of book profit- 90% or 150000 whichever is higher...
balance 60% of the amount.....
both remuneration and interest clause have to be in the deed........nd it is allowed only to a working partner...
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