Sir/Madam,
If a partnership firm pays salary to partners and pays Income Tax under Presumptive Scheme. Here the deduction claimed by the partner is claimed only on 8% of Income computed This salary deduction claimed is as per section 40(b) of the Income Tax Act. Partners were claiming Salary equally. Assumed figures were given below-
Total Income - Rs.90,00,000/-
Actual Salary claimed by partners - Rs.10,00,000/-
Assumed Income under Section 44AD - 7,20,000/-
Salary deductions claimed (300000*90/100+420000*60/100) - Rs. 5,22,000/-
Income Tax paid (720000-522000*30/100) = Rs.1,98,000/-*30/100 = Rs.59,400/-
Here my doubt is whether the partner needs to pay Income Tax under his own capacity on actual deduction claimed by each partner (i,e, Rs.2,61,000/-) or on actual salary paid to partners after the value of tax paid under Presumptive Taxation scheme by Partnership Firm Rs. 4,01,000/- (i.e. (Rs.10,00,000-Rs.1,98,000)/2).
CAclubindia
