HI ALL,
CAN A PARTNER WITHDRAW HIS SALARY FROM FIRM BOOKS ON MONTHLY BASIS OR NOT?
THX
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PARTNER SALARY
Replies (7)
hai
Usually there should be an agreement to this... No partner has the right to a salary unless and otherwise there is an agreement.. Without an agreement he cannot withdraw..
What amount of salary a partner can withdraw is determned by partnershp deed . Income Tax Act , only prescrbes the maxmum allowable remuneration to partner . The right to withdraw salary is not controlled by Income Tax Act.
yes.
Partnership is an agency of mutual trust and understanding. Everything in partnership is purely based on the deed
what is the amount of maxmum salary allowable as remuneration to partner under the it act
.
if ny partner want to withdraw his salary that shoulb be in deed..... if he withdraws his salary which is not specified in deed ... that amt shoulb be debited in to parnet capital account as "drawings".......
For salary / remuneration limit ... Please refer section 44 AA.
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