10 September 2014
respected experts, i have gone through the opinions of ca club experts about partnership deed in detail. as per sec 40 (b) of indian income tax act no where it is stated that partnership deed should be on stamp paper. and as per civil laws (negotiable instrument act etc) partner ship deed concluded on white paper is also valid .and requires no registraion also. i requet all the experts to discuss in elobarated manner. ******* advocate&tax consultant
10 September 2014
If you want to register the firm you required to buy the stamp paper according to stamp act. If you not intend to register the firm i.e., unregistered firm your point is correct.
If you go to register of firm with white paper agreement they take the stamp value along with fine and register the white paper as deed.
When come to allow ability of 40(b) there is no specific rule like that. Remuneration and interest allowed according to deed (whether registered or not).
There are lot of benefit of registering partnership deed.
CAclubindia
