Amendment has been made in sec. 40(b)(v) in Budget'2009. Whether there is a need to make supplementary deed to effect change in remuneration limit.???
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Section 40(b)(v) of the I.T. Act
Replies (5)
well i think as remuneration allowed is based on book profit, it don't depend on deed so no deed need to be prepared
Yes change will be required as remuneration should be authorised by the partnership deed.
Yes change will be required in the partnership deed but if it is simply mentioned as "as per 40 b of IT Act" ....i think no change / reconstitution is required....
yes the deed has to be supplemented.
Yes, agree with all the above answers....
It is only required that the amount is quantified or the mode of computation contained in the deed.
So the provision for partner's salary should be clear cut, its better to supplement the deed... cos the deed may contain the clause as, "subject to the limit specified in section of 40(b) of the IT Act, as may be amended from time to time"...
Still that need not be considered as sufficient quantification or laying down a proper method of computing. Its better to quantify and lay down a concrete way to compute salary payable... by executing supplementary deed or altering the deed.
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