Int,salary to partners of a firm having rental income only
This query is : Resolved
D R Meharwade
(Querist)
23 June 2018
Can interest on capital and remuneration be given to partners of a partnership firm having only rental income?
As rental income is reduced from business income and taxed under Income from house property after standard deduction of 30%, can further expense of interest on capital and remuneration to partners be claimed as deduction?
As rental income is reduced from business income and taxed under Income from house property after standard deduction of 30%, can further expense of interest on capital and remuneration to partners be claimed as deduction?
Ashiwini Ballodia
(Expert)
23 June 2018
You can claim partner remuneration & interest because you will have loss in PGBP & Income in House property and it can be set off with each other
24 June 2018
If the firm has rental income only, deduction u/s 40(n) can't be claimed. If composite income, then such deduction can be claimed against business profit subject to the
provisions in the Partnership Deed.
provisions in the Partnership Deed.
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