Partners salary
This query is : Resolved
22 June 2019
Is the partner in the partnership firm allowed to pay salaries?
If yes, then what will be the limit for the salary to each partners ?
If yes, then what will be the limit for the salary to each partners ?
22 June 2019
Yes.
a.. On the first 3,00,000 of book profits or in case of a loss Rs. 1,50,000 or at the rate of 90% of the book profit (whichever is higher)
b. On the balance of book profits at the rate of 60%
a.. On the first 3,00,000 of book profits or in case of a loss Rs. 1,50,000 or at the rate of 90% of the book profit (whichever is higher)
b. On the balance of book profits at the rate of 60%
22 June 2019
It will be calculated on last year book profit or current year?
22 June 2019
Current year book profit. The partnership deed must contain a clause regrading
partner's salary payment.
Please see CBDT Circular : No. 739, dated 25-3-1996 also.
partner's salary payment.
Please see CBDT Circular : No. 739, dated 25-3-1996 also.
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