Expenses from Partners remuneration

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Hi,

A working partner is eligible for remuneration and the same is allowed as an expenditure for the firm to the extent provided in the Income Tax Act. The remuneration (gross) which is allowed as an expenditure is to be taxed in the hands of the partner.

The query is -  

Whether the Gross remuneration is fully taxable ? or whether any of the expenditure such as travelling or telephone etc.. can be claimed from such gross remuneration ?

Thanks & Regards

Navami
Replies (12)
HELLO


THE REPLY TO UR QUERY IS AS FOLLOWS:--


AS PER SEC40(b)

ANY REMUNERATION PAID TO A WORKING PARTNER .. B Y   W H A T E V E R  N A M E   CALLED SHALL BE ALLOWED AS PER THE SLAB GIVEN, SUBJECT TO PROV OF SAME IN THE P DEED


SO WHETHER ITS SALARY PAYMENT, TELEPHONE ALLOWANCE PAYMENT, ELECTRICITY BILLS , ETC HAS TO BE ROUTED THROUGH SEC40b)


im sure that now u have got reply of ur query



vishal manchanda
ca final student
yahoo online chat id=the_only_sober_guy
HELLO


GROSS REMUNERATION SHALL BE TAXABLE AS THE PGBP INCOME IN THE HANDS OF PARTNERS AND NO EXP. IN EARNING OF SUCH INCOME  SUCH AS TELEPHONE ETC SHALL BE ALLOWED AS DEDUCTION IN THEIR HANDS.



VISHAL MANCHANDA
The partners salary is taxable under the head PGBP in the hands of partners. in case u can prove any expenditure made to earn such salary, it shall be allowed as expenditure u/s 37(1) in the hands of partners.
Hi
Any salary , bonus, commission, interest or any other payment (except the rent of his premises used by the firm for its business) given by the PFAF to its partners is an allowed business expense for the PFAF as per the limits provided in sec 40(b) of the Act providedly all the payments have been made as per the Partnership deed.

But all these payments are taxable for Partners individually as their Business Income u/s 28 of the Act. The amount of expense to the extent it is allowed for PFAF is taxable for the Partner. If partner incurres any expenditure personally to earn this income then he can claim deduction u/s 37. For Example: Partner took a loan from bank to make an investment in PFAF, then interest on such loan is deductible from the Business Income.

Regards
Vishal

Hi

      Anybody can help me?

I want know what is the slab rate of percentage to partner remuneration allowed by income tax authority of india

 

Thanks and best regards

Iyyappan

 

Can REMUNERATION BE GIVEN TO A HUF AS PARTNER

plese let me know the remuneration amount  to working partners allowed in incometax

HELLO

REMUNERATION RECEIVED BY PARTNER FROM COMPANY. WHETHER HE CAN CLAIM ANY EXPENSE LIKE TELEPHONE BILLS. CONVEYANCE. OR RENT PAID TO HOUSE

CLARIFY THE SAME @ THE EARLIEST.

 

REGARDS

NO. PERSONAL EXPENCES SUCH AS RENT OF RESIDENTIAL HOUSE IS NOT DEDUCTIBLE.

YOU NEED TO PROVE THE NEXUS THAT YOU HAVE INCURRED SUCH EXPENCES TO EARN THE INCOME OF REMUNERATION OR INTEREST ON CAPITAL INVESTED FROM THE PARTNERSHIP FIRM.

MR. PRADHAN,

REMUNERATION GIVEN TOP THE HUF PARTNER WILL BE TAXABLE IN THE HANDS OF THE KARTA OF HUF. AS REMUNERATION IS THE INCOME RELEVATN TO THE PERSONAL ABILITIES OF THE PARTNER. AS PER PARTNERSHIP HUF IS REPRESENTED BY THE KARTA OF HUF AS A PARTNER.

No ...Salary can only be given to the Karta of HUF for working which in turn will be taxable in the individual hands of the Karta...No Salary to HUF as there is no physical status 

Expenses from such remuneration may be claimed since such remuneration is taxable u/h PGBP.

Whether such partner can claim presumptive taxation for such remuneration and claim 50%/ 8% as income??


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