Remuneration to working partner in partnership deed

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Jyoti Kale (Querist)

01 February 2016 Hello Sir / Madam,

Please confirm me, We need to renew to partnership deed because of change in place of business. partnership deed first was made in 2002 at that time Remuneration to partners was mentioned in a deed as follows:

Book Profit/Loss % or amount of deduction i. Loss Rs. 50,000 ii.. Profit Rs. 50,000, Profit up to Rs. 75,000- 90% next Rs. 75,000 - 60% Balance profit 40%

as per my knowledge total Remuneration to partner has been changed so then we shall change this one also.which i think shall be as follows:
Book Profit/Loss % of the amount of deduction (i) loss or profit up to Rs. 3,00,000 Rs. 1,50,000/- or 90% of Book Profit whichever is more (ii) on the balance 60% of book profit -

Please confirm me the same, shall we change this clause also.

Guest

Guest (Expert)

03 February 2016 This is the problem when people mechanically include Income Tax Provisions in partnership deed. It is always best to write in partnership deed that the remuneration shall be mutually agreed - as against reproducing income tax act. So I recommend you to amend the partnership deed by way of amendment and keep copy of the amendment with all partners

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Jyoti Kale

Jyoti Kale (Querist)

03 February 2016 Thank you so much.....

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