Partnership firm & LLP
Tax rate for Partnership firm / LLP
Provisions for partner’s interest
Allowed for deduction if the following conditions are satisfied:
1. Payment of interest is authorized by the partnership deed
2. Rate shouldn’t exceed 12 %
3. Payment should be for the period after the partnership deed constitution.
Partner’s salary / remuneration (Section 40b)
Allowed to reduce net profit if following conditions are satisfied:
1. Remuneration should be paid to working partners
2. It is authorized by the partnership deed
3. It shouldn’t relate to period prior to partnership deed
4. Remuneration should be within permissible limit.