Salary & interest to a partner u/s 40(b)
This query is : Resolved
09 September 2012
Dear All,
If in my firm there is no profit and no loss because there is only WIP, am I allowed to claim the interest on capital and whether the same can be allowed to be included in my Closing WIP as an allowable expenditure.
Also what if the Book Profit is "Zero" i.e. No Profit and No Loss, am I allowed to claim salary to the tune of Rs 1,50,000/-, I being a working partner. As in case of WIP above, I have only closing WIP and No Profit No Loss??????
Please Elaborate
If in my firm there is no profit and no loss because there is only WIP, am I allowed to claim the interest on capital and whether the same can be allowed to be included in my Closing WIP as an allowable expenditure.
Also what if the Book Profit is "Zero" i.e. No Profit and No Loss, am I allowed to claim salary to the tune of Rs 1,50,000/-, I being a working partner. As in case of WIP above, I have only closing WIP and No Profit No Loss??????
Please Elaborate
10 September 2012
Yes, you can claim salary Rs 150000 even when there is no loss or profits in the firm.
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Soumitra Basu
(Expert)
11 September 2012
You can claim both the interest on capital and Remunetion to Rs. 150000. It is your discretion whether you will add these sum with Closing WIP or claim as loss.
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CA VISHNU GAVKARE
(Expert)
11 September 2012
before claiming jus make sure partnership deed allows for the same
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16 September 2012
Thanks a ton to all....
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