Partners remuneration U/s 40b

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Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011 Our partnership firm carrying business. In our firm in loss before paid remuneration in profit and loss a/c in F.Y. 2010 – 11. Can we give remuneration to partners?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 April 2011 If the partnership deed contains a clause stating that "the firm can pay remuneration to working partners in case of loss" then remuneration can be paid,otherwise not.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2011 remuneration allow. under Income Tax Act.

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