Ram & Co., a partnership firm, worked out total book profits for the year ended 31st March, 2018 at ₹5,00,000. The firm has made payment of salary of ₹4,60,000 authorized by the deed to the working partners and wants

CS Executive · Tax Laws and Practice · PYQS · June 2018
Ram & Co., a partnership firm, worked out total book profits for the year ended 31st March, 2018 at ₹5,00,000. The firm has made payment of salary of ₹4,60,000 authorized by the deed to the working partners and wants to know that how much amount of salary paid to partners is allowable:
(A) Actual salary paid of ₹4,60,000
(B) ₹3,90,000
(C) ₹2,70,000
(D) ₹2,50,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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