Sec 40 (b)
prachi (ichalkaranji) (47 Points)
12 July 2016prachi (ichalkaranji) (47 Points)
12 July 2016Before arriving at adjusted book profit for calculation of partners remuneration you should minus previous year brought forward loss maximum to the extent current year profit
After subtracting b/f losses if you have remaining profit balance then minus unabsorbed depreciation maximum to the extent remaining current year profit
In your case you can minus previous b/f losses upto the current year profit and no further reduction required of unabsorbed depreciation.
Further note that in the case of loss you can give Rs. 150000/- remuneration to the partners
I hope it will be help full to you
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