WHY RENT PAID TO PARTNER IS NOT CONSIDERED u/s 40(b) ???
The Language used in section 40(b) is "payment of salary, bonus, commission or remuneration, BY WHATEVER NAME CALLED."
So, Rent should also be considered in BY WHATEVER NAME CALLED.
Jai Mishra (16 Points)
10 April 2020WHY RENT PAID TO PARTNER IS NOT CONSIDERED u/s 40(b) ???
The Language used in section 40(b) is "payment of salary, bonus, commission or remuneration, BY WHATEVER NAME CALLED."
So, Rent should also be considered in BY WHATEVER NAME CALLED.
CA Thuppada Aruna
(Job)
(15 Points)
Replied 11 April 2020
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 11 April 2020
rent is not covered here
any amount paid to partner as rent is allowed as deduction and the same is not covered by Sec 40(b)
Jai Mishra
(16 Points)
Replied 27 April 2020
Originally posted by : CA Thuppada Aruna | ||
As per section 40(b), only payment of salary, bonus, commission, remuneration are included. The simple thing observed here is that all these payments, partners are supposed to report under PGBP in their Income Tax Return, so controls have been laid. Whereas for Rent, whatever the amount paid as rent is considered under HP income, which has a for standard ruling for all. So, the same is not included in 40(b).. |
Thanks ma'am for such elaborative answer. I was looking for such.
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