CA Abhishek Singh (practice) (2105 Points)
13 December 2013Hello everyone,
instead of transferring property into firm a partner wishes to give property on rent to the firm. my questions ;
1. whether rent paid by firm to partner would amount to salalry/remueration for the purpose of section 40b. ?
2. If answer to above is NO then is Tax deduction mandatory if rent>180000 pa ?
waiting for the views of the experts.
Vishal Thakur
(Job)
(48 Points)
Replied 22 December 2013
yes firm will definetly get a deduction... Rent is not covered under section 40(b). Refer case law Heastle v. Veith & Co. ICAI.... If the rent paid is excessive then excess rent would be disallowed under section 40(A)(2).......
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