Remuneration Maximum Permissible Limit

Remuneration Maximum Permissible Limit

Remuneration Maximum Permissible Limit


Payment of remuneration to any partner who is a working partner, which is authorized by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as the amount of such payment to all the partners during the previous year exceeds the aggregate amount computed as hereunder 

Book Profit

 Permissible  Limit

On the first Rs. 300000 of Book Profit or in case of Loss

Rs. 1,50,000 or 90% of Book Profits whichever is higher

On the Balance Book Profit

60% of Book Profits


Example: -




Calculation in computation 



Book Profit For Allowable Remunneration

399314

(After notional set off of unabsorbed depreciation of Rs. 0 )


Remuneration Calculation

329588

90 % of First         300000

270000


60 % of Remaining  59588


Max Remuneration Allowable -  329588




Hope this Helps 




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