Is remuneration optional or mandatory
This query is : Resolved
21 May 2026
Is remuneration to partners of partnership firm is optional or mandatory. Please clarify
21 May 2026
Remuneration to partners of a partnership firm is optional, not mandatory. Under Section 13(a) of the Indian Partnership Act, a partner is not entitled to any salary unless it is explicitly agreed upon. To pay and claim remuneration as a tax deduction, it must be clearly authorized in the Partnership Deed and stay within the statutory limits prescribed under Section 40(b) of the Income Tax Act.
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