Salary distribution between partners.

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This query is : Resolved

VIVEK SINGH (Querist)

09 February 2012 Dear sir,
Two partners having P&L ratio of 60:40. Can they distribute the calculated salary in their P&L ratio.
Thanks

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

09 February 2012 It would be depending on the terms and conditions agreed at the time of agreement to the partnership at that deed.
OM SAI SRI SAI JAI JAI SAI

VIVEK SINGH

VIVEK SINGH (Querist)

09 February 2012 Yes, partnership deed providing the same ratio for salary distribution.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

09 February 2012 Following the Remuneration Sharing Clause in the deed you may distribute.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

09 February 2012 Then it is ok. But as per Income tax act for the purpose of filing of income tax return it would be eligible or not depending on the firm's book profit at the end of the year but actually should be according to the deed.
OM SAI SRI SAI JAI JAI SAI

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