Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Interest and remuneration paid monthly

Save Share

This query is : Resolved

Quick Summary

Partnership firms can make monthly payments of interest and remuneration to their partners, provided these payments align with the partnership agreement. The Income Tax Act, 1961, does not restrict such monthly payouts, but they must adhere to the limits set out in Section 40(b) of the Act.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
Follow

25 September 2020 Interest and remuneration paid monthly to partners allowed in I.t. act by a partnership firm.

CA Raj Doshi

CA Raj Doshi (Expert)
Follow

26 September 2020 There is no restriction on monthly payouts under the IT Act. Please convey your like if the reply was helpful. Regards CA. Raj Doshi

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

26 September 2020 But it should be in accordance with the instrument of partnership subject to the limits of section 40(b) of the Income tax Act,1961.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now