Remuneration alloawable u/s 40(b) to firm

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vishal (Querist)

29 March 2017 suppose a partnership firm has two partner Mr x and y getting salary Rs 200000 & 400000 per annum whereas allowable remunaration to firm u/s 40(b) is rs 500000.
1.How much amount of remuneration shall be taxable in the hands of each partner?
2. Exemtion of rs 100000( on which firm pays tax by disallowing the 100000 Rs of Remunation) how will be apportioned between partners

Reply may be send at vishaldudheriya@gmail.com

Thanks & Regards

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

30 March 2017 1. Only 5 Lakhs i.e remuneration as per section 40(b) is taxable in the hands of partners and excess amount which is disallowed (1 lakh) is not taxable in the partner's hand because same is get taxed in the hands of firm.

2. The same should be apportioned between partners in PSR.

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vishal

vishal (Querist)

01 April 2017 Thanks CA Shubhanshu Jain for your advice

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