tax liability of partnership firm

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dhaval (Querist)

28 March 2009 What is the tax liability of partnership firm when the bok profit is up to Rs.50000 can you please suggest me the calculation of taxable profit?

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)

28 March 2009 On book profit of Rs.50000 you can give remuneratiom of Rs.50000, as the rule is for first Rs.75000, the remuneration can be 90% of the book profit or Rs.50000, whichever is higher. Thus the taxable income would be Nil and accordingly there will be no tax liability.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 March 2009 Provided the Instrument of Partnership ( Partnership deed) must necessarily contain a clause stating the minimum amount, maximum amount and the method of calculation of the partner's remuneration.

Om Prakash Singh

Om Prakash Singh (Expert)

11 April 2009 The partnership deed must contain the clause of remuneration tobe give to partner. if so then Firm can give remuneration to partner upto Rs. 50,000.00

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