if partnership deed provides salary of each partner is 5000 pm . can we expensed more than 5000 pm each partner while finalising profits? or we have to redraft partnership deed ??
Payment of salary must be in accordance with Partnership Deed. The Deed must provide the salary amount not exceeding maximum salary prescribed under Income Tax Act.
Any variation needs amendment in Deed.
Profit or Loss sharing in the ratio as per Deed.
Withrawals have to be in line with Clauses of Partnership Deed. It's not at WILL.
No limits for Withdrawal from the current account of the partners... Will means Partner can withdraw the amount without any limit in the Book balance..
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