Dear
Please advise me about the salary payable to partner my query is that the profit of the firm is around 11 lacs which include Bank interest and FDR Interest . The Interest on FDR is regular feature . Salary to partner is 6 lacs as provided in the books . Weather the same is allowable U/s 40(b) of the Act . I we treat the bank interest as business incom then the same is allowable as per the Comp Chart and if we reduce the same from business income and treat as income from other sources then the allowable salary is reduced accordingly.
Please advise me
Regards
Ajay
CAclubindia
