Normally speaking the remuneration that is disallowed u/s 40(b) is chargeable to tax in the hands of the p'ship firm and exempt in the hands of the partners, but the one that the firm claims teh deduction is taxable in the hands of the firm.
So it should be clearly stated in the partnership deed that how much salary needs to be distributed amongnst each of the partners that is being mutually agreed amongnst the partners at the time of drafting the deed.
Yes cinsistency shud be followed from year to year. So the salary ratio that is prescribed in the p'ship deed shud be followed consistently from year to year. Any change shud be duly authorized by registering the deed.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
