banner_ad

Partners remuneration

This query is : Resolved 
Profile Image

Profile Image

(Querist)
17 October 2014 1} if partnership firm charge interest on partners drawing, can remuneration be paid out of such interest charged?

2} can partners remuneration be paid out of capital gain?
Profile Image

CA VISHWAKEERTHI.P.S.

Profile Image

CA VISHWAKEERTHI.P.S. (Expert)
17 October 2014 Under income tax act remuneration clause covered under section 40(b).

According to 40(b) remuneration payable after considering interest on capital i.e., book profit.

Interest on capital is business expenses then interest on drawing shall be business income it shall not be taxed under other source .

So Answer to the Q.No., 1

Yes Remuneration allowable / chargeable on interest on drawings.

Remuneration provided on business income not on capital gain or other source of income earned by partnership firm .

So answer to the Q No., 2

No
Partners remuneration not be calculated on capital gain of firm.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
01 May 2026
Chartered Accountant

Agrawal Jain & Co.

Raipur

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details