deepak (accountant) (58 Points)
15 May 2014I want to know
In partnership firms income tax calculated on profit after remuneration of partners or before remuration of partners profit.
suppose 500000(profit)-5000(interest on capital)-95000(Salary to partners)=400000(Net Profit), then income tax calulated on 500,000 or 4,00,000?
Please provide help.
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 15 May 2014
Sir,
We are enclosed herewith a sec 40(b) as per Income Tax Act, 1961
deepak
(accountant)
(58 Points)
Replied 15 May 2014
thank you Harendra ji for giving details of remuneration calculation, but
My actual question is - which profit is consider for income tax calculation Remaing profit after remuneration paid or Profit Befor remuneration paid?
CAclubindia
