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Partner's Salary & the Impact of IT Act

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Question: Whether the Remuneration taken in cash is Disallowed under IT Act since it is more than Rs.20,000 as it is towards Expenses?

Case: The partnership firm name ABC & Co, having 4 partners, Each partner was credited with 6 lacs each and being credited in the Partners' current each partner. 

A partner take out every now and then Amounts more than Rs.20,000 (Say Rs.40000, 60000, 75000). 

 

Awaiting Golden Hearts to share their Experience

Replies (2)

can some one answer this

Sec 40A(3) is not attracted in case of Drawings .


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