Bharosa Tools
Partner remuneration
Section 40(b) remuneration ceiling and 12% interest on partner capital.
Maximum partner remuneration
₹6,90,000.00
First slab ₹2,70,000.00 · Balance slab ₹4,20,000.00
Maximum interest at 12%
₹60,000.00
Simple interest for one year on the capital you entered.
Section 40(b) allows, when the deed authorises it, ₹1,50,000 or 90% of book profit on the first ₹3,00,000, whichever is more, and 60% of the balance. On a loss the first figure is ₹1,50,000. Interest to partners is limited to 12% simple. This is the deduction ceiling for the firm, not the partners’ personal tax.