Taxability of Interest and Remuneration to partner
Shakir Ravjani (Student) (192 Points)
28 July 2018
What isTaxability of Interest and Remuneration to partner?
9 Replies
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 28 July 2018
taxability in the hands of whom?
Shakir Ravjani
(Student)
(192 Points)
Replied 28 July 2018
taxable in the hands of partner!... please quote section
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 28 July 2018
Remuneration and Interest received will be taxable.
Only share from firm i.e share in profit is exempt in hands of partner u/s 10(2)
Shakir Ravjani
(Student)
(192 Points)
Replied 28 July 2018
isn't there some limit up to which interest and remuneration exempt to firm and taxable to partner... beyond such limit it is taxable to firm and exempt to partner?
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 28 July 2018
| Originally posted by : Shakir Ravjani | ||
 |
isn't there some limit up to which interest and remuneration exempt to firm and taxable to partner... beyond such limit it is taxable to firm and exempt to partner? |  |
No No there is nothing like such
Nikki Goel
(64 Points)
Replied 29 July 2018
yes there is limit upto which remuneration is exempt in hands of firm and taxable in hands of partner as per section 40(b) whereby out of first 300000 of book profits or in case of book loss ,remuneration allowed is rs.150000 or 90% of book profits whichever is higher
n out of balance book profits , remuneration allowed is 60% of book profits
further interest to partners allowed in hands of firm is upto 12% .
n out of balance book profits , remuneration allowed is 60% of book profits
further interest to partners allowed in hands of firm is upto 12% .
Deepak
(na)
(174 Points)
Replied 03 August 2018
Yes agree with Nikki. The limit upto which interest and remuneration are taxable in the hands of the partner is only deductible from the profit of the firm
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