Taxability of Interest and Remuneration to partner

taxability in the hands of whom?

taxable but share of profit is exempt!!!

taxable in the hands of partner!... please quote section

48(2)(b)

Remuneration and Interest received will be taxable.

Only share from firm i.e share in profit is exempt in hands of partner u/s 10(2)

isn't there some limit up to which interest and remuneration exempt to firm and taxable to partner... beyond such limit it is taxable to firm and exempt to partner?

Originally posted by : Shakir Ravjani
	isn't there some limit up to which interest and remuneration exempt to firm and taxable to partner... beyond such limit it is taxable to firm and exempt to partner?

No No there is nothing like such

yes there is limit upto which remuneration is exempt in hands of firm and taxable in hands of partner as per section 40(b) whereby out of first 300000 of book profits or in case of book loss ,remuneration allowed is rs.150000 or 90% of book profits whichever is higher
n out of balance book profits , remuneration allowed is 60% of book profits

further interest to partners allowed in hands of firm is upto 12% .

Yes agree with Nikki. The limit upto which interest and remuneration are taxable in the hands of the partner is only deductible from the profit of the firm