ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    A firm pays Rs. 3,00,000 as salary to partners, allowed

    as per deed. Book profit is Rs. 10,00,000. What is the maximum allowable deduction for partnerтАЩs salary under Section 40(b)?
    A Rs. 1,50,000 Correct Answer Incorrect Answer
    B Rs. 2,50,000 Correct Answer Incorrect Answer
    C Rs. 3,00,000 Correct Answer Incorrect Answer
    D Rs. 6,90,000 Correct Answer Incorrect Answer
    E Rs. 5,00,000 Correct Answer Incorrect Answer

    Solution

    Book profit = тВ╣10,00,000 Allowable salary = тАв 90% of first тВ╣3,00,000 = тВ╣2,70,000 тАв 60% of remaining тВ╣7,00,000 = тВ╣4,20,000 тАв Total = тВ╣6,90,000 Paid = тВ╣3,00,000 тЖТ fully allowable But maximum allowable is тВ╣6,90,000, so тВ╣3,00,000 is within limit, but the correct answer should reflect the maximum allowable, which is тВ╣6,90,000.┬а

    Practice Next
    More Taxation Related Questions
    ask-question