Parnter salary in firm
This query is : Resolved
16 October 2025
sir.
Let's me know , whether partner salary is compulsory if firm is profit.
In a firm there is two partner and they contribute ( capital ) is more than profit .
Please advise
with regards
Binu
Let's me know , whether partner salary is compulsory if firm is profit.
In a firm there is two partner and they contribute ( capital ) is more than profit .
Please advise
with regards
Binu
16 October 2025
Salary or remuneration to partners is only payable if allowed by the partnership agreement, and there is no statutory requirement to pay salary just because there is profit or high capital contribution.
Profit is distributed among partners based on the agreement, and capital contribution can influence profit sharing but does not mandate a salary.
If there is no mention of salary in the partnership deed, none need be paid, regardless of profits or capital put in.
Tax law only limits deductions for partner salary if paid, but does not require payment.
Profit is distributed among partners based on the agreement, and capital contribution can influence profit sharing but does not mandate a salary.
If there is no mention of salary in the partnership deed, none need be paid, regardless of profits or capital put in.
Tax law only limits deductions for partner salary if paid, but does not require payment.
Message likes :
1 times
24 October 2025
sir.
Thanks you for valuable information
Thanks you for valuable information
Message likes :
1 times
24 October 2025
You are welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Notice from IT DEPTT IF FD AMOUNT EXCEEDS 10 LACS
- Unable to generate and save json file for updated return
- GST payable under RCM
- Applicablity on tds
- Regarding TDS not deducted on rent
- Tax audit & Switching from Presumptive taxation
- Which SAC code should be selected??
- Inverted Tax Structure & Unutilized ITC on Services
- LTCG offset against property buy
- PRODUCT AND SERVICE CATEGORY CODE
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
