Income tax on firms
This query is : Resolved
24 September 2007
The assessee firm had received Rs.150000 as interest on bank deposit.Whether the same is to be allowed as deduction in computation of eligible remmuneration as per the income tax act.
dinesh bhandary
(Expert)
24 September 2007
no, you dont get deduciton under the head salary.
24 September 2007
As per 40(b) or (ba) of the act for computation of book profit only business income is taken for remmuneration computation. Whether the above income is a business income?
Ravikumar.G
(Expert)
24 September 2007
Interest Income which is incidental to the Business it is to be treated as Business Income other it will be treated as Income from "OTHER SOURCES". If it is a business income the remuneration of partners which can be claimed against those income other wise it should not be deducted.
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