Partnership firm
This query is : Resolved
Sunil Sharma
(Querist)
01 May 2015
Dear Sir,
I want to know that we should pay of salary & interest to partners in a partnership firm. or Not.
If yes then what will limit to salary or interest to partners.
What is compulsory salary or interest.
If loss is coming in firm. what do.
I want to know that we should pay of salary & interest to partners in a partnership firm. or Not.
If yes then what will limit to salary or interest to partners.
What is compulsory salary or interest.
If loss is coming in firm. what do.
CA Anshu Agarwal
(Expert)
01 May 2015
Payment of salary and interest depends upon related clause of Partnership deed. However, income tax allows the salary and interest to partners upto the limits specified u/s 40(b). Any salary to non working partner shall not be allowed under income tax. Further, salary not authorised by the partnership deed shall also not be allowed. In case of loss, income tax allows total salary upto Rs.150000.
Sunil Sharma
(Querist)
04 May 2015
Thank you very much sir,
But sir, What is the Minimum Rate of Interest on Capital.
But sir, What is the Minimum Rate of Interest on Capital.
CA Anshu Agarwal
(Expert)
05 May 2015
maximum rate of interest on capital allowable under income tax is 12% p.a.
Sunil Sharma
(Querist)
18 May 2015
ok Sir, But minimum rate of interest on capital P.A.
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