Provisions of section 40(b) of Income Tax Act 1961

1 comments Monday, February 7, 2011
Section 40(b) of Income Tax Act places some restrictions and conditions on the deductions of expenses available to an assessee assessable as a partnership firm in relation to the remuneration and interest  payable to the partners of such firm. The deductions regarding salary to partners and any payment of interest to partners  cannot exceed the monetory limits specified u/s 40(b) and are available subject to the fulfillment of conditions mentioned therein.

The following conditions must be satisfied before claiming any deduction in respect of salary/remuneration or interest payable to partners by a partnership firm.

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