Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Very urgent ca final dt-nov 12

(Guest)

hi.what is the limit for remuneration in case of firms i.e. is it for first 300000-90% and bal 60%?plz reply ASAP

Reply
Follow
Share

14 Replies

Nithin Chettoor (Assistant Manager) (388 Points)
Replied 14 November 2012

Its for the first 3,00,000/- pf the book profit - its 1,50,000/- or 90% of the book profit, whichever is higher

and for the balance profit - 60% of such book profits.

1 Like

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 14 November 2012

Originally posted by : Nithin Chettoor
	Its for the first 3,00,000/- pf the book profit - its 1,50,000/- or 90% of the book profit, whichever is higher and for the balance profit - 60% of such book profits.

AGRRED.

1 Like

(Guest)

thanks for the reply,i hv one more doubt if there is business loss then how much is maximum remuneration?is it 1,50,000?and is it same for professional as well?

(Guest)

plz reply soon

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 14 November 2012

ITS FOR LOSS or 1ST 3,00,000 of book profit----1,50,000 or 90% of book profit whicever is less.

1 Like

(Guest)

u mean if there is loss of say 156000 and there r 3 partners who r getting remuneration of 20000 each then remuneration will b 150000 or 60000 whichever is less.ryt?

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 14 November 2012

Yes bt this are maximum amount that u can get as deduction in income tax in case of loss.

it is not necessary u should give this ,much amount topartners as remuneration ok?only upto dis and below dis u can give under income tax actfor availing deduction u/s 40(b).

1 Like

(Guest)

bt then if i'll gv deduction of 60000 then partners will get 20000 each or not?

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 14 November 2012

yes ur ri8ok?

(Guest)

thanks a lot.

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 14 November 2012

Originally posted by : TusharSampatM.Com CA,CS-FINAL
	ITS FOR LOSS or 1ST 3,00,000 of book profit----1,50,000 or 90% of book profit whicever is less.

Dear sir,

Its whichever is more i.e, upto a book profit of Rs, 300,000/-, the maximum allowable remuneration for deduction is Rs. 1,50,000 or 90% of the book profit whichever is more.

So in the case of loss, the maximum allowed is Rs. 1,50,000/-

Thanks.

1 Like