Partners salary
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 April 2016
maximum salary , bonus commission can be paid to partners in the case of loss of firm .
Murtaza I Bhagat
(Expert)
28 April 2016
Remuneration u/s 40(b)
On the 1st 3 Lakhs of the Book Profit or In case of Loss Rs. 1,50,000/- or 90% of the Book Profit w.e. is more on balance Book Profit 60% of Book Profit
Explanation 3 to section 40(b) defines “book-profit” as to mean the net profit, as shown in the profit and loss account for the relevant previous year, computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit.
On the 1st 3 Lakhs of the Book Profit or In case of Loss Rs. 1,50,000/- or 90% of the Book Profit w.e. is more on balance Book Profit 60% of Book Profit
Explanation 3 to section 40(b) defines “book-profit” as to mean the net profit, as shown in the profit and loss account for the relevant previous year, computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit.
28 April 2016
Rs.1,50,000 is the maximum.
Rupesh Jain
(Expert)
29 April 2016
you can give Rs.150000/- in case of loss
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