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.
CAclubindia
