In the absence of partnership deed, partner
In the absence of partnership deed, partner
shall not be paid salaries
Correct option: B – shall not be paid salaries
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In the absence of a Partnership Deed, the provisions of the Indian Partnership Act, 1932 apply.
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As per the Act, no partner is entitled to salary for taking part in the conduct of the business unless it is expressly agreed in the partnership deed.
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Therefore, when there is no partnership deed, partners are not paid any salary.
Option A – shall be paid salaries
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Salary to a partner is not automatic.
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It is payable only if it is clearly mentioned in the partnership deed.
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Hence, A is wrong.
Option C – active partner shall be paid salaries
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Even an active (working) partner is not entitled to salary without an agreement.
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So, C is also wrong.
Option D – none of these
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Since Option B is correct, this option cannot be correct.
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Therefore, D is wrong.
Hence, the correct answer is Option B – shall not be paid salaries.
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