One more question, in our agreement we decided working partner will get Rs.1,00,000/- as salary per month. We did paid the same to the working partner every month. Out LLP is now under loss.
I found this web page https://www.llponline.in/tax_llp.php mentioning that the remuneration can not be more than 60% of the profit.
Is the salary paid to the partner for his work part of remuneration ?
Yes salary paid to partners for work is a part of remuneration.
The details regarding salary in the attached document are absolutely correct.
In case you wish to give higher remuneration to partners, you can do so, but for the purpose of calculating profit of the firm, the remuneration paid by you above the maximum permissible remuneration as per Income Tax Act, will be dissallowed as expendituer of the firm. & you be taxed on such higher remuneration in the firm, while the same will remain exempt in the hands of partners...
The employee u r talking abt are partners or other ?
In case of partners, no tds is required to be deducted.
In case of other employees if there is any mistake in filing return of tds, you always have an option of filling a correction return.
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