bhavik (CA FINAL) (108 Points)
10 March 2010
suppose , if in dec. 09 partnership firm created & up to march 10 work of only capitalisation done , no business at all .. dan can we give remunaration to partners & ask deduction u/s 40(b)for dat A.Y.
capitalisation under business come under the defination of business considering it as advanture in relation to trade , commerce or manufacture ..??
or we hav to capitalize such remu. as not any business activity at all ..
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 10 March 2010
i think you can claim deduction at Rs 50,000 maximum, as thats the minimum amount of partners remunaration allowed as per sec 40(b)
C.Balaji
(Learner)
(1867 Points)
Replied 10 March 2010
Dear Victor......
Is it Rs.50000/- or Rs. 150000/-..??????
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 11 March 2010
It is 50,000 only(its the max you can take if the firm is under loss, and here also as firms business activity has not started, we can assume that firm is under loss), if you want to confirm the amount, visit
https://www.incometaxindia.gov.in/acts/income%20Tax%20Act/40.asp
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