I am working as an account in a partnership firm, the profit for the Financial year 2012-13 is 6000000/- by which the eligibility salary comes Rs. 3690000/-, but due to high tax , can i give salary to partners more than eligibility salary (more than 36,90,000/-)?, please give me solution.
2 Replies
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 11 August 2013
Dear Niranjan,
No, the salary can't exceed the amount specified u/s 40(b) as rightly calculated by you (i.e. Rs. 3690000). There's no other way-out to exceed the said amount.
However, you may pay interest to the partners on their capital @ 12% (if they are entitled for interest as per partnership deed). That might help a bit.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
Devendra
(Chartered Accountant)
(4775 Points)
Replied 11 August 2013
The Excess salary given shall be disallowed by the AO.
Hence, you cannot give salary beyond the said limit.
Recent Topics
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
- Need your valueble insight.
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
Related Threads
CAclubindia
