That All the Partners of the firm shall be treated as working partners and they shall devote their time for business of the firm and they are entitled to draw remuneration within the limits prescribed U/S 40(b) of income tax act.
The above remuneration is subject to change as per partners mutually agreed upon from time to time.
while writing partnership deed, is above remuneration clause acceptable ?
in the above para, all the partners shall be treated as working partners is not acceptable.
You may word it as under:
The partners devoting their time for the business shall be treated as working partners and entitled to remunertaion mutually agreed between all partners from time to time within the limits prescribed u/s 40(b).
I hope this solves your query.
In partnership deed , obscence of specific amount of remunaration distributed to each partner is acceptable for claiming remuneration for income tax purposes?
A R JADHAV AND ASSOCIATES
Mumbai
CA Inter
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