DEAR ALL,
KINDLY SUGGEST ME IN PARTNERSHIP FIRM IS IT MANDATORY TO PROVIDE INTEREST ON CAPITAL.
AND HOW MUCH REMUNERATION OR SALARY WE CAN PROVIDE TO WORKING PARTNERS.
it is not mandatory but normally this clause is put in the deed.
you can provide it in the deed the amount of remuneration ad decided mutually amongst all the partners.
however under IT remuneration wud be allowed subject to the limits specified under section 40(b)
on first 3lacs 150000 or 90% of book profits whichever is high
and balance book profits 60% is allowed
CAclubindia
