Forums
Back
Partners remuneration
Direct Taxation
How to calculate remuneration when there is loss and not book profit
Answers (7)
Nisha Rajput
On first 3 lakhs of book profit or in case of loss â?? â?¹ 1, 50,000 or 90% of book profits (whichever is higher).
Suppose if we have book profit 90000. Then remuneration will be 150000
Let me make my query ellaborate My book profit is suppose 90000, which is less than 300000. So while calculating partners remuneration, law states that up to 300000, 90%of book profits or 150000 whichever is higher. So remuneration would be 150000. Whether my interpretation is correct.
Whether that statement can be interpreted like this: ð??¡In case of profit exceeding 300000 - For the first 300000, 90% of book profit or 150000,whichever is higher + 60% 0n balance amt exceeding 3L. ð??¡In case of loss - 150000. Profit/loss means book profit/loss
Suppose book profit is Rs.90000, remuneration would be Rs 81000 (90% of 90000) or Rs 150000 whichever is higher, therefore remuneration would be allowed upto 150000. However, remuneration allowed shall not exceed the remuneration paid. For example, actual remuneration paid is 50,000. Then deduction shall be Rs. 50000. The same applies if the book loss is Rs. 90000. Ignore the negative and compute the rest.
Your Reply