1. Firm P&L Net Profit
P&L book profit prior to debiting partner salary, bonus, and interest.
2. Add Partner to Firm
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Directly exports Clause 21(a) partner schedules to client Tax Audit workpapers in Turia.
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This tool is an automated calculation, formatting, and compliance aid provided for informational purposes only. It does not constitute formal legal, taxation, or professional auditing advice. Calculations, citations, and draft documents must be independently verified by a qualified Chartered Accountant (CA) or Company Secretary (CS) against statutory provisions and applicable ICAI/ICSI guidelines before execution or certification.
Maximum Allowable Remuneration: ₹8,58,000
Budget 2024 raised the first slab threshold from ₹3 Lakhs to ₹6 Lakhs (limit ₹3,00,000 or 90%), unlocking ₹90,000 in extra tax deductions for this firm!
Allowable Deduction
₹8,58,000
Book Profit for 40(b)
₹11,30,000
After 12% allowable interest
Remuneration Drawn
₹9,60,000
By working partners
Form 3CD Disallowance
₹1,02,000
Clause 21(a) disallowance
Partnership Firm Working Partners Remuneration & Interest Schedule
Income-tax Act, 1961 | Section 40(b) (as amended by Finance (No. 2) Act, 2024) | AY 2025-26
| Partner Name | Status | Capital (₹) | Interest Paid | Remuneration Drawn | Action |
|---|---|---|---|---|---|
Ramesh Patel ABCDE1234F | Working | ₹25,00,000 | ₹3,00,000 (12%) | ₹4,80,000 | |
Suresh Shah BCDEF2345G | Working | ₹25,00,000 | ₹3,00,000 (12%) | ₹4,80,000 | |
Meena Patel (Sleeping Partner) CDEFG3456H | Sleeping | ₹10,00,000 | ₹1,20,000 (12%) | ₹0 |