Regarding applicablity of 40B provision

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This discussion clarifies that remuneration paid to partners in a Limited Liability Partnership (LLP) is indeed permissible under Section 40B. Because LLPs are treated similarly to traditional partnership firms for tax purposes, the provisions of Section 40B, which cover partner interest and remuneration, are applicable. Adjustments may be necessary based on the specific structure and operational nature of the LLP.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

24 March 2025 is remuneration to partner of LLP is allowed under section 40B?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 March 2025 Since LLPs are treated similarly to partnership firms for tax purposes, the rules applicable to partnership firms under Section 40B are applicable to LLPs as well.
Section 40B’s provisions regarding interest and remuneration to partners are applicable to LLPs, with adjustments made based on their structure and the nature of their operations.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 September 2025 Good luck....

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