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?
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.
CAclubindia
