India - Income Tax Act 2010 - Saarc

1.255 CH. IV - COMPUTATION OF BUSINESS INCOME S. 405[(v) any tax actually paid by an employer referred to in clause (10CC)of section 10;]6[(b) in the case of any firm assessable as such,—(i) any payment of salary, bonus, commission or remuneration, bywhatever name called (hereinafter referred to as “remuneration”)to any partner who is not a working partner; or(ii) any payment of remuneration to any partner who is a workingpartner, or of interest to any partner, which, in either case, is notauthorised by, or is not in accordance with, the terms of thepartnership deed; or(iii) any payment of remuneration to any partner who is a workingpartner, or of interest to any partner, which, in either case, isauthorised by, and is in accordance with, the terms of thepartnership deed, but which relates to any period (falling prior tothe date of such partnership deed) for which such payment wasnot authorised by, or is not in accordance with, any earlierpartnership deed, so, however, that the period of authorisation forsuch payment by any earlier partnership deed does not cover anyperiod prior to the date of such earlier partnership deed; or(iv) any payment of interest to any partner which is authorised by,and is in accordance with, the terms of the partnership deed andrelates to any period falling after the date of such partnershipdeed in so far as such amount exceeds the amount calculated atthe rate of 7 [twelve] per cent simple interest per annum; or8(v) any payment of remuneration to any partner who is a workingpartner, which is authorised by, and is in accordance with, theterms of the partnership deed and relates to any period fallingafter the date of such partnership deed in so far as the amount ofsuch payment to all the partners during the previous year exceedsthe aggregate amount computed as hereunder :—5. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. Original clause (v) was inserted by theFinance Act, 1968, w.e.f. 1-4-1969, amended by the Taxation Laws (Amendment) Act, 1970,w.e.f. 1-4-1971 and later on omitted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972.6. Substituted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to substitution, clause (b) wasamended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985, the Direct TaxLaws (Amendment) Act, 1989, w.e.f. 1-4-1989, and the Direct Tax Laws (Amendment) Act,1987, w.e.f. 1-4-1989.7. Substituted for “eighteen” by the Finance Act, 2002, w.e.f. 1-6-2002.8. See Circular No. 739, dated 25-3-1996. For details, see Taxmann’s Master Guide toIncome-tax Act.