When can partner salary be withdrawn from the partnership ac

abhishek (partner) (40 Points)

28 April 2017  

I have a partnership firm with two partners. For the previous financial year, ending 31st march 2017, is there a time limit upto which we can withdraw partner salaries from the partnership account? We also have income from other sources so we waited till all the income was clear to decide how much to allocate as salary to save maximum tax (profit will get reduced and will be taxed as indivvidual income).

So is there a time limit for that? Or is whatever the balance was in the current account of the partnership on 31st march 2017 the final profit which has to be taken? Upto when can we make payments for previous years liabilities?

Thanks in advance for your reply!