Question

why is partner's remuneration deducted to determine normal profit of a firm?.... no spam pls​

Answer 1

Explanation:

Remuneration has to be deducted from each year because it is a charge against profits. ... If the remuneration paid were not constant for each year then we would have deducted it from each year's profit/losses and then calculated the average profits.

Answer 2

Answer:

Remuneration should be authorized by partnership deed:

As per section 40(b) of the income tax act only that salary, remuneration, bonus, commission etc payable to working partners will be allowed as deduction only if it is authorized by the partnership deed

Explanation:

I hope that helps you