Partner salary distribution ratio same???-query

Ankit (C.A.-Student) (680 Points)

05 July 2013  
all query related to partnership firm taxation A partnership firm have a remuneration clause in partner ship deed in a same way as normally every deed contains like compliance of Sec 40b. Say for a FY max allowable salary is 30lac, and firm distribute among partner in ratio of 5:3:2 but profit sharing ratio is 3:1:1 My query is whether firm can distribute salary in this manner(5:3:2)?? Does income tax alllow it?? secondly can same partnership firm distribute salary in next year in 77:13:10, but again profit sharing ratio remain 3:1:1??? Does consistency have to be followed every year for income tax??? Partnership deed doesnot contain any clause regarding distribution of salary among partner, but defined only max amount allowed. Please help and clarify