Partner's remuneration in partner's individual it return
This query is : Resolved
22 August 2015
If allowable Partners Remuneration in the firm stands to be less than actual remuneration paid to the partners, what will be the amount of remuneration shown as income from business and profession in individual returns of the Partner..??
For example,
Actual Partner's Remuneration = Rs. 6,00,000
Allowable Partner's Remn in Firm = Rs. 5,00,000
then which amount will be shown as taxable income from Business and Profession in Individual Partner's ITR..??
If we take 6,00,000 as income, the differential amount of Rs. 1,00,000 will be taxed in Firm as well as in Partners Individual Return. If Remuneration is shown as Rs. 5,00,000, It will not match with Firm's Final Accounts/Balance Sheet.
For example,
Actual Partner's Remuneration = Rs. 6,00,000
Allowable Partner's Remn in Firm = Rs. 5,00,000
then which amount will be shown as taxable income from Business and Profession in Individual Partner's ITR..??
If we take 6,00,000 as income, the differential amount of Rs. 1,00,000 will be taxed in Firm as well as in Partners Individual Return. If Remuneration is shown as Rs. 5,00,000, It will not match with Firm's Final Accounts/Balance Sheet.
22 August 2015
Show remuneration as 5 lacs in the firm's accounts and Show 1 lac as drawl then it will match.
Individual return show 5 lacs as taxable income.
Individual return show 5 lacs as taxable income.
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