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Clarification on remuneration to nri partner

This query is : Resolved 

09 August 2014 Sir one of partnership firm has given remuneration to NRI partner. NRI partner gives advise on Internet from US. He also intracts over phone for day to day problems. Whether remuneration paid to him is allowable under the Incometax act

09 August 2014 Not eligible for remuneration since the NRI partner is not 'actively' engaged in the business. Inference is from explanation 4 of section 40(b) of the Income tax Act,1961.

09 August 2014 YES HE IS NOT TAKE REMUNERATION, ONLY GET INTT. ON CAPITAL.


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