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Calculator · Direct tax

Partnership firm interest and remuneration limit

This tool works out the interest and remuneration to partners that a firm or LLP can claim, using the prescribed limits on book profit. It is used by partnership firms, LLPs and their accountants. You need to enter the book profit, the capital of each partner and the interest and remuneration paid, and the result shows the allowed interest, the allowed remuneration and the disallowed excess.

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How to use this calculator

  1. Enter the book profit, the capital of each partner and the interest and remuneration paid.
  2. Choose the type of firm and the working partners to match your situation.
  3. Read the allowed interest, the allowed remuneration and the disallowed excess in the result.

The deed must authorise the payments; confirm the deed provisions and the basis of the calculation.

The result is an estimate for the figures you enter. It is not a filed return, a certificate or professional advice. Rates, thresholds and section numbers change with each Finance Act, and the Income-tax Act, 2025 applies from 1 April 2026 with new section and form numbers.

For the related work, see Income tax return (ITR) filing.

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Sources

Last reviewed: . General information only. Check the official source or speak to a Chartered Accountant before acting on a result.

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