Salary of partner
This query is : Resolved
17 October 2015
IN A PARTNERSHIP FIRM, THERE ARE TWO PARTNERS OUT OF THEM ONE IS ACTIVE AND OTHER IS INACTIVE DUE TO OLD AGE, SO ACTIVE PARTNER RECEIVES FULL SALARY AND DEBITED TO PROFIT AND LOSS ACCOUNT, WILL THE I.TAX AUTHORITY ALLOW THESE EXPENSES TO BE DEDUCTED FROM PROFIT . KINDLY REPLY
DEBABROTA ROY
DEBABROTA ROY
18 October 2015
Yes salary to partner is allowed
19 October 2015
If it is specifically mentioned in the 'instrument of partnership', salary to the 'working partner' will be allowed as an expense of the FIRM subject to the ceiling prescribed in section 40 (b) of the Income tax Act,1961.
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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Traces submitting correction statement error
- ITR-Capital Gain
- ITR-3 File/Error Found
- Rent claimed on building given on permissive possession basis
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
