Remuneration to LLP partner

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1. Can LLP pay remuneration to working partners....?

2. Will this remuneration be considered as expenses for LLP...?

3. Will remuneration be considered as salary or business income in the hands of partners...??
Replies (9)

1. Yes.

2. Yes, deductible up to limit u/s 40 of income tax act.

3. Business income.

Actually my CA is saying govt has stopped the partners remuneration from last year.

first LLP income tax computation will be done and partners remuneration will be paid from net profit after tax and partners remuneration will be tax free in the hands of partners.

Is there any changes in partners remuneration....??

That happens when you show 8% profit of turnover irrespective of actual profit u/s 44AD.

Yes... I agreed to Mr Manish.,

Remuneration is allowed in LLP and also it's under expenditure head...

The remuneration is treated as Business income in the hands of Partners;


***The following income shall be chargeable to income-tax under the head "Profits and gains of business or profession",—

any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm
remuneration and interest not available u/s 44ad
@ Jitendra Singh.,

Yes... Your is partly correct.
As partners remuneration and Interest is not available if firm opt u/s 44ad. It's correct.


But,
Sec 44AD not applicable to LLP...
Yes, thanks Mr. Raja.
Sorry for the Typical Error... as


Yes... Your CA***** is partly correct
thanks everyone for your valuable feedback


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