Remuneration out of Rental Income
This query is : Resolved
TARIQUE RIZVI
(Querist)
15 October 2020
Respected Sir,
Kindest regards to all of you.
I shall be highly obliged to you, should you please guide me.
Ours is partnership firm consisting of six partners. We have given our plant & Machinery on Lease (Rent) for a long period of three years. Whether can we claim remuneration out of Rental Income.
Remuneration shall be credited to partners capital income in P&L % ratio. The nett profit of the firm will come down after crediting remuneration to partners capital account and finally tax liability on shoulder of the firm will be lesser and the partners will pay income tax individually but slab wise.
Kindest regards to all of you.
I shall be highly obliged to you, should you please guide me.
Ours is partnership firm consisting of six partners. We have given our plant & Machinery on Lease (Rent) for a long period of three years. Whether can we claim remuneration out of Rental Income.
Remuneration shall be credited to partners capital income in P&L % ratio. The nett profit of the firm will come down after crediting remuneration to partners capital account and finally tax liability on shoulder of the firm will be lesser and the partners will pay income tax individually but slab wise.
CA R SEETHARAMAN
(Expert)
16 October 2020
Credit such rental receipts to p and l and claim remuneration to partners as allowed under income tax.
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