Partnership fim

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 December 2012 whether salary paid to partners in cash is allowed or not? I am confuse about it....

24 December 2012 Why it won't be allowed. However same should be within the constraints of S. 40A (3) and 40(b).

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 December 2012
it exceeds 20000... then not allowed ??? is it??

24 December 2012 Yes. This is the overriding constraint of S. 40A(3)

25 December 2012 Dear Friend, in case of salary & wages the provisions of Rules 6D of the Income Tax Act, 1961 give us some liberty. Salary & wages to employee cane be paid in cash. Salary paid to partners of a firm in cash will be allowed as deduction but subject to provisions of Rules 6D. Thanks

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Querist : Anonymous

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Querist : Anonymous (Querist)
25 December 2012 Is it necessary to deduct tax while paying salary to partner? salary amt.after deducting epf is below rs.20000/- p.m.?

25 December 2012 Deepak Ji, I don't think Rule 6D is in force. It has been omitted.
Dear Querist, No TDS is required u/s 192 since salary is not chargeable under the head "Salaries"

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Querist : Anonymous

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25 December 2012 thank you sir....


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