On 31st march 2021 remuneration to parrners will be provided to the partners of "Be Safe" but only out of:
1. Profit for the account year
2. Reserves
3. accumalated profits
4. Good will
Answers
Answer:
1. Profit for the account year
Answer:
Profit for the account year
Explanation:
The Partnership Deed's Remuneration section must include the necessary information in order to pay the partners compensation. The amount to be paid to the active partner, non-active partner, and sleeping partner must be specified with the consent of the partners. The payment clause in a partnership deed also specifies the amount and date to be paid as remuneration.
The amount of compensation that will be provided to the working partners should be specified in the partnership agreement.
According to section 40(b), a partner is referred to as a working partner. If a partner has given the business all of his or her working hours, only the partner is responsible for compensation.
The compensation granted to the working partners will be subject to deduction by the company beginning on the date of the stated partnership deed, not from any earlier time.
The partners' compensation should not exceed the income tax department's permitted maximum.
To reward the partners for their engagement, the various types of returns are defined. The partners must take into account each of these provisions while drafting the partnership agreement.
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