Hello everyone,
instead of transferring property into firm a partner wishes to give property on rent to the firm. my questions ;
1. whether rent paid by firm to partner would amount to salalry/remueration for the purpose of section 40b. ?
2. If answer to above is NO then is Tax deduction mandatory if rent>180000 pa ?
waiting for the views of the experts.
yes firm will definetly get a deduction... Rent is not covered under section 40(b). Refer case law Heastle v. Veith & Co. ICAI.... If the rent paid is excessive then excess rent would be disallowed under section 40(A)(2).......
PARV & Co.
New Delhi
CA Inter
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Anupam Parashar & Co.
Ghaziabad
CA Final
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CCI
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