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PAYMENT OF INTEREST, SALARY, BONUS, COMMISSION OR REMUNERATION MADE BY FIRM TO ITS PARTNERS SECTION- 40(b)

Income Tax - Partnership Firm / Limited Liability Partnership (LLP) - 02 - Interest and remuneration paid to the partners by a firm are not deductible. However, the interest and remuneration paid to partners by a firm are deductible if all the follow .....

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neration shall be admissible only if the partnership deed either specifies the amount of remuneration payable to each individual working partner or lays down the manner of quantifying such remuneration. The payment of remuneration and interest should .....

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calculated at the rate of 12% per annum simple interest (any amount in excess will be disallowed). Maximum permissible deduction for payment of remuneration to working partners:- deduction for payment of remuneration to working partners for both Busi .....

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pays interest to a partner and the partner pays interest to the firm on his drawings, then the interest shall not be netted off. The interest received by the firm from the partners on their drawings is taxable in the hands of the firm as income under .....

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unt is allowable as deduction to the firm provided the partnership deed specifically authorizes the payment of interest on fixed capital account, then interest on current capital account and loan account shall not be allowed as deduction to the firm. .....

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(Section 32) Brought forward losses will not be deducted. (Section 72) Chapter VI-A deductions are also not to be deducted. Remuneration is to be added back if it is debited to Profit & Loss Account. Interest paid to the partners to the extent it .....

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S.K. Srigiri & Brothers (2008) 171 Taxman 264 (Kar)] Interest from fixed deposit of spare funds which was declared as part of business income and which was accepted by Assessing officer then the same cannot be excluded from book profit for the pu .....

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