Dear Experts,
Can you please let me know clear procedure to change the partners salary clause for an existing Firm
Please note that it should be in conformity with income tax authorities requirements for allowing the salary deduction
Murali
kmuralica @ gmail.com
You need to amend the Partnership Deed saying that The Partners shall be paid salary as per the Provisions of Section 40(b) of the Income Tax Act, 1961 as amended from time to time in their Profit Sharing Ratio.
Thanks for your reply
Can you please let me know the clear procedure for amending the Partnership deed?
Any registration is required for that?, because in the Partnership Act it is given that the Deed can be amended for Admission, retirement etc., but there is no clause for amending the salary
Murali
The procedure for amending the Partnership Deed is similar to that of Original Partnership Agreement.
CAclubindia
