WHAT IS BOOK PROFIT IN PATNERSHIP FIRM AND HW MUCH IS THE SALARY TO BE GIVEN TO PATNER IF PROFIT BEFORE SALARY IS 300000/-
WHAT IS BOOK PROFIT IN PATNERSHIP FIRM AND HW MUCH IS THE SALARY TO BE GIVEN TO PATNER IF PROFIT BEFORE SALARY IS 300000/-
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 22 May 2015
Computation of book profit
Remuneration - Permissible limit:
If the book profit is negative – Rs.1.5 lacs
If the book profit is positive
So in this case, considering 3 lacs as book profit, Rs.2.7 lacs can be paid as remuneration
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 22 May 2015
Yeah if both r working partners and if such share of salary is specified in partnership deed
Vishal Bhatt
(CA Practice )
(39 Points)
Replied 22 May 2015
Vishal Bhatt
(CA Practice )
(39 Points)
Replied 22 May 2015
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 24 May 2015
then profit will before sharing to partners will be taxable in the hand of firm and profit sharing in hand of partners will be exempt. But salary received (except which are not allowed for deduction) will be taxable in hand of partners as individual as PGBP income.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"