I am partner in LLP. As per 40B if profit is negative then partners max salary will be 1.5lac and positive then 90% of profit or 1.5 lac which is more. In our case its 1.5 lac. But i am also working as software engineer and director designation in my LLP. 1) My question is can i withdraw separate salary of my software engineer designation or director's designation ? 2) If yes then TDS should be deducted ?
That doesn't makes sense because a partner in an LLP cannot work as an employee also because the remuneration a partner is getting is like a salary to an employee therefore as there are provisions for remuneration there can't be seperate salary for partner.
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And if partner posted as director?
In an LLP director means designated partner so basically you are partner so how you ask for different types of salary.
Example: Person A and B are very good in programming (software coding) and decided to launcg their own product by registering LLP firm. (Both A and B are partner and directors). They don't want to hire any programmer (software programmer) because both are good to deliver service. Now rule restrict them to get 20k/month salary because both are partner and can't withdraw more than 1.5 lac of salary? They have to hire someone else to whom they can pay 20k/month. Is it right?
Yes that's right.
This is a drawback in income tax that's why in partnership firm they hire people to just show salary expense and then they take that amount from them because actually the partners were only working but there is a restriction on salary of partner therefore they have to take such steps.
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Dear Sir,
Hope you are doing well !!
- No,you can not withdraw separate salary for the same.
Even if partner posted as director, he can not withdraw separate salary.
Yes, it is absolutely right.
- Please call to discuss.
Hi
No, you cannot withdraw separate salary.
Hope it helps
Hi
Yes ,it is correct,you have to hire .