Is rent paid to partner's huf by partnership firm deductible

income tax related question.
there is a partnership firm name A B & CO.. having two partner A & B .
Partnership firm took office on rent from one of the partner's huf. say A-Huf.
the question is 
can partnership firm claim rent as deduction (debit to p & l acc) ?
is it allowed under income tax?

Replies (5)

There is no any restriction  on payment of Rent to HUF of any partner.
but there is disallowance u/sec 40A (2)a, on excessive payment of rent over normal rent prevailing in market, paid to related parties as defined under sub clause (2)b.

Yes Mr. Umang, Partnership firm can claim deduction as a rent (debit to Profit & Loss account ), HUF is the seperate entity as per the Income Tax act. So that there is no question of disallowances.  

Is it possible to register a new partnership firm with same name by another persons with already existed name?  Is there any restictions on the names of the partnership names like in the case of companies Act. Please help me.

Is rent paid by firm on behalf of partner for the residence of partner & his family will allowable as deduction under income tax act in the books of the partnership firm, please confirm. 

Note :- Rent Agreement is between landloard & the partnership firm (& not with partner).

Rent can be allowed as deduction provided such rent is substantial and not charged in execess of market rates, else excess rent will be disallowed

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details