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Partners remuneration when firm taxed u/s 44ad

Tax queries 318 views 2 replies

GauravRHegde

Article

22 Points Joined March 2017

When a partnership firm is taxed u/s44AD for AY17-18 , will the partners be exempt from showing remuneration and interest in their individual returns as the firm was not given deduction or will we have to provide for minimum remuneration as per deed, in their individual returns.

Thankyou

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210821 Points Joined July 2016

If deed specifically provides for certain amount of remuneration...... then the amout of capital should be distrubuted in that ratio as remuneration paid (though taxfree) first and then it can be shared as per partnership ratio.......

prasad

government employee

225 Points Joined March 2017

if deed certifies the rate of interest and remuneration then they are eligible to receive the same from the income of the firm. not exempt from tax in their individual returns.