About salary and remuneration

This query is : Resolved

prudhvi (Querist)
Follow

01 March 2013 DEAR EXPERTS,

CAN A PARTNER BECOME AS AN EMPLOYEE IN A PARTNER SHIP FIRM , IF YES CAN HE GET BOTH REMUNERATION AND SALARY ?

THANK FOR UR FUTURE ANSWERS.

@VaibhavJ

@VaibhavJ (Expert)
Follow

01 March 2013 Hi

The payment of salary to partners in a partnership firm in India cannot exceed the monetary limits specified under the Income Tax Laws and are available subject to the fulfillment of conditions:

Remuneration should be paid to a working partner

Remuneration must be authorized by the Partnership Deed

Remuneration should not be paid for the period prior to Partnership Deed

Remuneration should not exceed the permissible limit mentioned in Section 40(b)

S. 40(b)(v) allows a deduction of payment of remuneration to a working partner if it authorized by the partnership deed and not in excess of the limits.

S. 40(b)(v) does not lay-down any condition that the partnership deed should fix the remuneration or the method of quantifying remuneration.

Accordingly, CBDT circular No. 739 dated 25.3.1996 which requires that either the amount of remuneration payable to each individual should be fixed in the agreement or the partnership agreement deed should lay down the manner of quantifying such remuneration goes beyond s. 40(b)(v).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rajat Khandelwal

Rajesh Surapaneni

Shailesh Prajapati

Santosh Behera

Michael & Co.

Subscribe Now

About salary and remuneration

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

Senior Executive

CA Final

GST CONSULTANCY

Manager- Finance and Compliance