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remunaration to partner in firm

01 July 2018

can a partner in partnership firm can take remunaration by law ???

and if yes
then is it applicable to show it in IT filing in section 44ad

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4 Replies

priyankagupta (article) (361 Points)
Replied 01 July 2018

In partner's case ITR-3 is selected. So not possible to file under 44Ad

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Pranay Dubey (51 Points)
Replied 01 July 2018

but i have to show the firm's profit in 44ad
then que is that can i show remunaration to partners
while showing profit of firm in 44ad

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 01 July 2018

Remuneration to partners is not taxable in the hand of Partners.
so question to show u/s 44ad doesn't arise.

apart this you can show other business u/s 44ad.

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 02 July 2018

Partnership Firm ll file u/s 44ad then no way for claim Remuneration and interest to partners. The profit share fully exempted In the hands of Partners...

In case the will file ITR u/s 44AA and 44AB then Remuneration and Interest will be claim and It's taxable in the hands of partners...

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