Regarding partnership firm

434 views 3 replies

hardik gupta

manager

40 Points Joined February 2014

dear sir,

my uncle owns a propreitor firm and now we want to make it to partnership firm in the next year from 1.4.15

we are going to be 50:50 partnership, our turnover in last year 2014-2015 is around 1.3 crores

with approx net profit of 6 lakh and gross profit of 20 lakh

My query is can i put term of 30000 per month salary for partners along with 12% bonus yearly. considering

above figures of net profit will be continued for this year or may get better?

My uncle says this much salary cant be put in the clause of the partnership deed. experts please guide

For current year my uncle is already paying me salary of 20000 rs

Replies (3)

CA Raj Doshi

Practising CA

8954 Points Joined December 2013

It is advisable to draw as per limits under income tax act. Normally , Ca advises the same and is specifically written in partnership deed.

CA HAYEDAR SHAIKH

Practice

627 Points Joined June 2014

It is better to draw the Partnership Deed as per the provision contained in the Income Tax Act.

Don't create conflict while drawing partnership deed by adding any point in the deed.

Dear sir thank you for prompt and informative reply...I will go with the standard 3 lakh 90% or 1,50,000 which ever is more. ... my query is sir for putting monthly figure we have to calculate monthly net profit and then decide salary? How can we arrive at monthly figure of salary without getting in trouble