partnership remuneration

This query is : Resolved

Share Report Follow Query Ask a Query

tadikamalla satyanarayana

tadikamalla satyanarayana (Querist)
Follow

31 July 2010 partnership remuneration allowable for the asst. year 2010-2011 accounting year

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

31 July 2010 Remuneration to partners in a firm including limited liability partnership: Under the existing
provisions of the Income-tax Act, the payment of salary, bonus, commission or remuneration
(hereinafter referred to as “remuneration”) to a working partner of a partnership firm is
allowed as deduction if it is authorised by the partnership deed and subject to the overall
ceiling of monetary limits prescribed under sub-clause (v) of clause (b) of section 40. The
existing limits are as under :
(1) In case of a firm carrying on a profession —
(a) On the first Rs. 1,00,000 of the book-profit Rs. 50,000 or at the rate of 90%
or in case of a loss of the book-profit, whichever is more;
(b) On the next Rs. 1,00,000 of the book-profit At the rate of 60%;
(c) On the balance of the book-profit At the rate of 40%;
(2) In the case of any other firm —
(a) On the first Rs. 75,000 of the book-protit, Rs. 50,000 or at the rate of 90% of
or in case ol a loss the book-profit, whichever is more;
(b) On the next Rs. 75,000 of the book-profit At the rate of 60%;
(c) On the balance of the book-profit At the rate of 40%;

The Act has made upward revision of the existing limits of the remuneration. Further, uniform
limits have been prescribed for both professional and non-professional firms for simplicity and
administrative ease. The revised limits are as under:
(a) On the first Rs. 3,00,000 of the book-profit Rs. 1,50,000 or at the rate of 90%
or in case of a loss of the book-profit, whichever Is more;
(b) On the balance of the book-profit At the rate of

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RADHAKRISHNAN A R

ASHOK KUMAR TEKURU

giriswar

Credible HRM

atul kumar soni

Subscribe Now

partnership remuneration

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA