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Remuneration paid to partners of a firm
Whether remuneration paid to the partners of a firm is taxable in the hands of firm? If not, What are the conditions to be eligible for exemption and in whose hands, such remuneration will be taxable?
Replies (4)
Generally remuneration paid to partner is taxable in hands of the partner. However this remuneration paid to partner will be subject to threshhold limit as below:
Profit up to 3 lakhs : Rs.1,50,000/- or 90% of profit which ever is more
Profit more than 3 lakhs: Upto 3 lakh 90% and above 3 lakhs 60%
if the remuneration paid is more, the same will be disallowed and added back to profit of the firm.
Yes... It's taxable in the hands of Partners. As per section 40(b) of the income Tax act. As per above calculation (Mr. Vinay Hedge's reply)...
Note :
The remuneration, Interest are differed from the FY 16-17....
Note :
The remuneration, Interest are differed from the FY 16-17....
Thanks a lot
You are welcome Dear
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