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Remuneration clause in partnership deed

Tax queries 3266 views 2 replies

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  ?

 

 

Replies (2)

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?

 


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