Partner's remuneration
This query is : Resolved
17 May 2016
Is there any limit on payment of remuneration to Partners??. Under which head, partner has to show in his personal computation ??..
17 May 2016
Yes limits are set out under section 40b(v) any excess payment will be deemed to be the income of the firm. Partner shall show remuneration under the head income from business or profession.
17 May 2016
Yes,u/s 40(b)(v) deduction allowed within the percentage prescribed based on book profit.
Upto 3 lakh book profit or loss . Salary allowed Rs.150000/-@ 90% of profit which ever is higher.
Balance @ 60%. Of book profit allowed as salary to partners.
Partner has to file ITR -3. Separate column to declare salary, share of profit and interest on capital. Same will be taxable if exceed taxable limit.
Upto 3 lakh book profit or loss . Salary allowed Rs.150000/-@ 90% of profit which ever is higher.
Balance @ 60%. Of book profit allowed as salary to partners.
Partner has to file ITR -3. Separate column to declare salary, share of profit and interest on capital. Same will be taxable if exceed taxable limit.
17 May 2016
as per Income Tax Act 1961 ,u/s 40(b)(v) deduction allowed within the percentage prescribed based on book profit.
Upto 300000 book profit or loss . Salary allowed Rs.150000/- @ 90% of profit whichever is higher.
Balance @ 60%. Of book profit allowed as salary to partners.
19 May 2016
How will be excess amount treated both in Firm & Partner case ??..
19 May 2016
Excess amount issued as salary will be disallowed and same will be taxable in the hands of Firm.
19 May 2016
And what if salary issued is more than one mentioned in partnership deed??
20 May 2016
How will partner treat excess amount received from firm (more than allowed as per sec 40b) in his personal ITR??
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