Question ID : 31719

REMUNERATION IN PARTNERSHIP DEED

Remuneration in Partnership deed is required to be mentioned specifically as per the wordings of the Income-tax. However, whether a fixed sum as salary can be specified in deed and for the additional remuneration (payable as commission) payable within the limit specified in the IT Act Sec 40(b)(v) could be mentioned in the deed, so as to pay remuneration as per the IT act without amending deed every year?

Answer ID : 69832

Please draft your Deed in amanner you can amend it by supplementary deed or even by Resolution of the Partners . Please be very careful about this clause. Thanks CHARAN DASS SHARMA

Answer ID : 69835

The instrument of partnership should be drafted in such a way that remuneration clause should contain the minimum remuneration, method of calculation of remuneration, maximum remuneration and the manner of sharing among the working partner's for clarity and to avoid litigation.

Answer ID : 70857

Sir You have to read the requirements and very careful while drafting and which should cover the amendments by way of Supplementary deed or by resolution duly signed by the all Partners This calculation of Book profit,amount of remuneration (only to working partner)is base calculations further Interest will be allowed if provided in the deed not exceeding 12% This is difficult problem and you consult your friend /some software. (CHARAN DASS SHARMA)

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