Section 80iba,tax free profits

If the partnership firm doing the project under 80iba,the profit earned is tax free. The firms pays remuneration & interest on capital to the partners as per section 40. Whether this amount is tax free for individual partners. I read one case in which these are rejected in appeal also, being return not filed on time. But the case does not reflect whether such income to partner is tax free. Please guide.
Replies (3)
Quick Summary
This discussion explores whether remuneration and interest paid to partners in a firm eligible for Section 80-IBA tax benefits are themselves tax-free. While the firm's net profits are tax-free when distributed to partners' capital accounts, it's clarified that remuneration and interest paid to partners are generally taxable. The necessity of paying remuneration is also discussed, noting it depends on the LLP deed.

Remuneration & interest paid to partners is not tax free. Only the net profits earned by the firm, when distributed to capital accounts of partners is tax free.

Is it necessary to pay reenumeration to partners. Only profits will be distributed to capital ac, of LLP firm

Depends upon the LLP deed of incorporation. Unless specified in it, its not mandatory.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics :

Loading
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
11 August 2026
COMPLIANCE EXECUTIVE

YMW COMPLIANCE SERVICES LLP

Others

CA Final

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details