Remuneration disallowance for partners clarifies unauthorised payments, retrospective authorisations, capped interest and profit-linked limits on partner payments. The amendment disallows deductions for partner payments not authorised by, or not in accordance with, the partnership deed, including remuneration to ... Summary
Remuneration disallowance for partners clarifies unauthorised payments, retrospective authorisations, capped interest and profit-linked limits on partner payments.
The amendment disallows deductions for partner payments not authorised by, or not in accordance with, the partnership deed, including remuneration to non-working partners and unauthorised remuneration or interest; allows validation by a deed during the relevant previous year for a specified assessment year; caps deductible interest at eighteen per cent. simple interest for periods after a deed's date; and imposes aggregated remuneration ceilings for working partners computed by reference to book-profit with distinct slabs for professional/notified firms and other firms, with explanations on representative partners, definition of book-profit, and working partner.
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