14 January 2014
1) Remuneration paid by the partnership firm are taxable in the hands of partners under head of PBGP 2) Partnership firm are allowed to take the deduction of remuneration paid to partners as per section 40 (b) of income tax Act,1961
14 January 2014
with regards to interest please note that it might get disallowed under 14A as it is being utilized to earn exempt income in form of profits.
other expenses such as car, stationery, depreciation on such car, any statutory allowance etc shall be allowed.. refer Mohan Sunder Rajan , Mum vs Assessee on 24 August, 2012
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