The amount of salary to all the partners for the previous year cannot exceed the limits given below.
as Finance (No.2) Act, 2009 w.e.f. 1/4/2010
(a) On the first3,00,000 of book profit or in case of a loss
@ 90% of the book profit or1,50,000, whichever is more
On the balance of book-profit
@ 60% of the book profit.
Rate of Tax
Firms are taxable at a rate of 30% flat. But if having long-term and short term capital gains then 20% and STT @ 15% respectively. No Surcharge will be levied for A.Y. 2010-11, but Education Cess @ 2% will be applicable.