Partnership Firm Remuneration & Interest Input

Instructions: Enter the assessment year, net profit, remuneration as per books, and number of partners. Then provide partner names and their capital contributions. This will help calculate allowable remuneration, interest, and tax computation under Sec 40(b) of the Income Tax Act.

📌 How to Use This Calculator

Assessment Year: Enter the financial year for which you want to calculate the partnership firm and partner income tax.
Net Profit as per P&L: Enter the net profit of the firm after accounting for all operating expenses, but excluding partner remuneration and interest on capital. Depreciation should be considered as per Income Tax Act.
Remuneration as per Books: Enter the total amount of remuneration already paid or recorded in the books to partners.
Number of Partners: Enter the total number of partners in the firm. Once entered, input fields for each partner's name and capital will appear.
Partner Details: For each partner, provide:
- Name: Full name of the partner.
- Capital Contribution: Total capital contributed by the partner to the firm.

After filling in the above details, click Calculate to generate:

Firm’s book profit and maximum allowable remuneration (Sec 40(b)).
Interest on capital and partner-wise remuneration.
Partner-wise taxable income and firm-level taxable income for tax planning.

📘 About the Partnership Firm & Partner Tax Calculator

This free tool helps you calculate the taxable income of a partnership firm and its partners as per Section 40(b) of the Income Tax Act, 1961. It automatically computes the allowable remuneration, interest on partner’s capital, and taxable income distribution for Assessment Year 2026-2027.

⚖️ How the Calculation Works

Book Profit is derived after adding back interest and remuneration to Net Profit.
Allowable remuneration = ₹3,00,000 or 90% of first ₹6,00,000 (whichever is higher) + 60% of balance.
Interest on capital is allowed up to 12% simple interest.
Share of profit is exempt in partner’s ITR, but remuneration & interest are taxable in the partner’s hands.

✅ Benefits of Using This Calculator

Compute firm’s taxable income under Sec 40(b) in seconds
Get partner-wise income statements instantly
Plan remuneration & capital interest for maximum tax efficiency
Updated as per latest Income Tax Rules (AY 2026-2027)

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