remuneration to partner
This query is : Resolved
11 September 2009
If a partner is HUF, can he get remuneration as partner? and While calculating the tax of partnership firm, can we get deduction from profit as partners salary U/s. 40a
11 September 2009
INCOME OF HUF IS WHAT ARISES FROM CORPUS OF THE HUF.......REMUNERATION IS FOR WORKING , WHICH IS INDIVIDUAL WORKING.
SO REMUNERATION PAID IS REMUNERATION TO IND AND NOT HUF HENCE NOT ALLOWABLE U/S 40a
SO REMUNERATION PAID IS REMUNERATION TO IND AND NOT HUF HENCE NOT ALLOWABLE U/S 40a
11 September 2009
As per section 40(b) remuneration should be allowed as deduction only for working partner if a huf is working partner and authoried by the partnership deed he can get the remuneration.But the as per 40(b) an individual who is actively participate in running the business is allowed for remuneration. One viw is that if the karta of the HUF participates in runing the bussiness he can be allowed for remuneration.
11 September 2009
No, HUF can not be a working partner. Therefore deduction u/s. 40(b) not allowed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
