TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Manuals
of of All Manuals
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Section 40(b): Deduction Rules for Partner Payments in Firms Explained; Interest, Salary, and Remuneration Limits Detailed.</h1> Section 40(b) of the Income Tax Act outlines the conditions under which a firm can deduct payments made to its partners for interest, salary, bonus, commission, or remuneration. Payments are deductible if made to working partners and specified in the partnership deed, which must not allow retrospective payments. Interest up to 12% per annum is deductible if authorized by the deed. Remuneration limits are based on book profits, with specific caps outlined. Interest and remuneration are not allowable if tax is paid on a presumptive basis. Payments must be authorized and specified in the partnership deed to be deductible.
TaxTMI 
TaxTMI 
