section 40(b) of income tax provides that the exemption is
for first 3,00,000 or loss - 1,50,000 or 90%of BP whichever is higher
for the balace - 60%of BP
my question is what if there are two working partnes??
will the deduction be available for both i.e., two times or will it bw done on pari passu basis??
The rule is for firm / company, irrespective of the no of partners.
you mean that irrespictive of remuneration paid to no of working partners, the firm is eligible to the deduction only once!!
is that what you mean
rule 40(b) itself is applicable to firm only, not on "number of partners"
| Originally posted by : U S S | ||
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The rule is for firm / company, irrespective of the no of partners. |
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Good Concept..........
Keep Sharing Your Views/ideassss/Knowledge...!
| Originally posted by : U S S | ||
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The rule is for firm / company, irrespective of the no of partners. |
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agreed
the above limit is for firm as a whole...
in case there is more then one working partner it would be distributed among them in agreed ratio in partnership deed
in case there is more then one working partner then it would be distributed among them in agreed ratio in partnership deed
First you must know that it is applicable to Firm bookprofit. hence it is allowed as whole net profit as computed by section 40(b). Suppose remuneration topartners Rs.400000 allowed by 40(b) rs 175000
Balance 225000 Taxable in frim. Rs.175000 should apportioned between the partners by salary ratio not profit sharing ratio.
this rule is applicable to firm only, not applicable to company and aop...etc
irrespective of working of partners, for firms book profit this deduction allowed, such allowed remmuneration is taxable in the hands of partners with their remmuneration sharing ratio as per partnership deed
| Originally posted by : chaitanya | ||
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this rule is applicable to firm only, not applicable to company and aop...etc irrespective of working of partners, for firms book profit this deduction allowed, such allowed remmuneration is taxable in the hands of partners with their remmuneration sharing ratio as per partnership deed |
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agreed
i went through my study material, sec 40(b) is applicable only to the firm not for company
Thanks all, for your clarification
The 40(b) say about firm remunartion payable to all the working partners
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