Limit On Payment Of Remuneration To Partners
Whether There Is Any Limit On Payment Of Remuneration To Partners?
- Sector-1, Noida
No, LLP Act 2008 has not prescribed any limitation/ restriction on the payment of remuneration to partners but the same can be provided under the LLP Agreement.
However the Income Tax Act prescribes the maximum limit up to which the deduction to the LLPs for such remuneration is allowed against its taxable income.
On First Rs 3,00,000 of book profit or in case of loss Rs 1,50,000 or at the rate of 90% of the book-profit, whichever is more. On the balance of book profit at the rate of 60%
Answered on 28 Sep 2018
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