Hi,
Can anyone explain with example how to calculate remuneration to partners if firm incurs loss. If there are 3 partners and loss is INR 500000/-
Thanks
Menu
Salary to Partners in case of loss
Replies (2)
There is no formula.. as per Income Tax Act, the maximum limit for partner remuneration in case of loss is 150000 which cab be divided among partners in any ratio
If the partners have capital contributions of INR 100,000, INR 200,000, and INR 300,000 respectively, the loss would be allocated as follows:
Partner A: (INR 100,000 / INR 600,000) x INR 150,000 = INR 25,000
Partner B: (INR 200,000 / INR 600,000) x INR 150,000 = INR 50,000
Partner C: (INR 300,000 / INR 600,000) x INR 150,000 = INR 75,000
Recent Topic
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
- Professional advance taxes
- Surrender pan process
- Tds on deceased's pan
- Exempt income declaration schedule EI in ITR2 (AY2
- Mold cost invoice in GST return
- WhatsApp document sharing: Client sends Aadhaar, P
Related Topics
CAclubindia
