While declaring income of 8% of Gross receipts in case of Partnership firm. How to determine partners remuneration. Net Income( 8%)=48782/-, Partners Interest=25240/- an Salary Paid to both partners=48000/-. Pl provide the net income chargeable to tax. Also pls clarify whether interest and salary clause mandatory to drafted in deed. What would be the impact if deed is silent about interest and salary of partners.
10 October 2011
Net Income = 48,782 Interest = (25,240) 23,542 Rs.23,542 is a income before salary. You can provide salary of 90% on 23,542 or 150,000 whichever is higher. So you can claim loss too. It is mandatory to provide clause for salary and interest in partnership deed. If it is silent, you cannot provide for both.
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