Parnter salary in firm
This query is : Resolved
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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.
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24 October 2025
sir.
Thanks you for valuable information
Thanks you for valuable information
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24 October 2025
You are welcome.
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