Remuneration to Partners
This query is : Resolved
16 July 2009
A partnership firm (formed in F. Y. 2000 – 01) had capped the remuneration to partners at Rs. 60,000/- per partner per annum, vide the original partnership deed.
In January 2006, vide an addendum to the partnership deed, the firm increased the limit to Rs. 1,50,000/- per partner per annum.
A clause was inserted in the addendum to state that the aforesaid changes in the remuneration would be effective from 1st April 2006.
a) For the purpose of computing remuneration allowable u/s 40(b) of the I. T. Act, which limit would be considered?
b) If the copy of the addendum was not attached with the ROI, will the changes in remuneration be considered valid for the purpose of section 184 and / or section 40(b) of the I. T. Act?
Thanks & Reagrds
Niki
In January 2006, vide an addendum to the partnership deed, the firm increased the limit to Rs. 1,50,000/- per partner per annum.
A clause was inserted in the addendum to state that the aforesaid changes in the remuneration would be effective from 1st April 2006.
a) For the purpose of computing remuneration allowable u/s 40(b) of the I. T. Act, which limit would be considered?
b) If the copy of the addendum was not attached with the ROI, will the changes in remuneration be considered valid for the purpose of section 184 and / or section 40(b) of the I. T. Act?
Thanks & Reagrds
Niki
16 July 2009
Even you don't need to send the copy of addendum to ITO.
Hence you can claim the remuneration 1.5L per partner effective from 01-04-06.
Hence you can claim the remuneration 1.5L per partner effective from 01-04-06.
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
- Itr 1 processing
- Off Market debit and credit transaction
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Article ship defecit
- 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
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
