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Partners remuneration

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12 December 2015 2 partners are being paid a fixed remuneration of Rs 90000/- each there is a book profit of Rs 423508/- after adding this amount to the net profit as per profit and loss account. What will be the allowable remuneration as per section 40(b)(v)

12 December 2015 Profit before remuneration - Rs. 4,23,508. Allowable remuneration as per section 40 (b) (v) - Rs. 3,44,105.

If Rs.90,000 each is restricted in partnership deed, then allowable u/s 40 (b)(v) is only Rs. 1,80,000.



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