I want to know that does partner salary admissible when we deduct it from gross profit ? or it should be deducted from net profit after payment of tax ?
AA-34A-Partnés Salary Distribution (Relaunch)
Replies (3)
Quick Summary
Response awaited from respected members.
Query is still unanswered. Please response.
Partner salaries are neither deducted from gross profit nor paid out of net profit after tax; instead, they are treated as an appropriation of profit in the P&L Appropriation Account and are deductible for the firm under Section 40(b) up to statutory limits before arriving at taxable income.
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