suppose , if in dec. 09 partnership firm created & up to march 10 work of only capitalisation done , no business at all .. dan can we give remunaration to partners & ask deduction u/s 40(b)for dat A.Y.
capitalisation under business come under the defination of business considering it as advanture in relation to trade , commerce or manufacture ..??
or we hav to capitalize such remu. as not any business activity at all ..
i think you can claim deduction at Rs 50,000 maximum, as thats the minimum amount of partners remunaration allowed as per sec 40(b)
Dear Victor......
Is it Rs.50000/- or Rs. 150000/-..??????
It is 50,000 only(its the max you can take if the firm is under loss, and here also as firms business activity has not started, we can assume that firm is under loss), if you want to confirm the amount, visit
https://www.incometaxindia.gov.in/acts/income%20Tax%20Act/40.asp
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