Drafting partnership deed - salary clause ?
This query is : Open
18 August 2017
Hello
Let say if you using below clause for remuneration, is it still required to specify a figure for salary to working partners?
"The remuneration payable to the working partners above shall be credited to their respective accounts on ascertainment of book profits. The total remuneration/bonus shall not extend as per the limits laid down under clause 5 of section 40 (b) of the I.T. Act 1961 , and the above calculation of the remuneration is also subject to variation, if any changes made under clause 5 of section 40 (b) of the Income Tax Act , 1961."
Let say if you using below clause for remuneration, is it still required to specify a figure for salary to working partners?
"The remuneration payable to the working partners above shall be credited to their respective accounts on ascertainment of book profits. The total remuneration/bonus shall not extend as per the limits laid down under clause 5 of section 40 (b) of the I.T. Act 1961 , and the above calculation of the remuneration is also subject to variation, if any changes made under clause 5 of section 40 (b) of the Income Tax Act , 1961."
18 August 2017
Seems insufficient. Please see CBDT Circular 739 dated 25.3.1996 and finalize the remuneration clause accordingly.
18 August 2017
I found the circular here
https://incometaxindia.gov.in/Communications/Circular/910110000000000020.htm
Now only 60%of profit is allowed as total salary that can be withdrawn , so how can we decide how much salary should be withdrawn in the deed at the start of FY? Can someone help me in drafting the deed please.
https://incometaxindia.gov.in/Communications/Circular/910110000000000020.htm
Now only 60%of profit is allowed as total salary that can be withdrawn , so how can we decide how much salary should be withdrawn in the deed at the start of FY? Can someone help me in drafting the deed please.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- Intimation under section 245
- GST input credit on commercial property
- Gift to nri relatives residing in usa
- ETDS return q4 25-26
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
