When can partner salary be withdrawn from the partnership ac

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!

Replies (1)

May not be withdrawn, but can be accrued to capital accounts of the partners by 31.03.2017. Please note remuneration must be authorised by partnership deed and the quantum of deduction or manner of its computation is to be mentioned in the deed. If there is not any such provision in deed then no deduction is allowed.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details