Under the existing provisions of the Income-tax Act, the payment of salary, bonus, commission or remuneration (hereinafter referred to as “remuneration”) to a working partner of a partnership firm is allowed as deduction if it is authorised by the partnership deed and subject to the overall ceiling of monetary limits prescribed under sub-clause (v) of clause (b) of section 40. The existing limits are as under: (I) in case of a firm carrying on a .....
What is Partnership Firm A partnership firm for the purpose of income-tax means a partnership firm as defined under the Indian Partnership Act, 1932 and includes a limited liability partnership firm as defined under the limited liability partnership ACT, 2008. Taxation of Partnership Firms There is not distinction as registered and unregistered firms. The partnership firms is taxed as a separate entity. For calculation of total income of the firm, any salary, bonus, commission or .....
