Explain the calculation behind it

LUCIFER · 3 Aug 2024

Calc book profit first : - (112000) + 200000*3 = 488000 then compute the taxable remuneration which would be allowed as deduction u/s 40 (b) i.e. first 3 lacs = 270000 + on balance = 188000*60% =112800 then taxable remuneration will be 382800 . Now it's the total remuneration; divide it among 3 partners which is equal to 382800/3 = 127600 each taxable remuneration allowed as deduction u/s 40 (b)

Sujal · 3 Aug 2024

N.L : (1,12,000) Add :6,00,000 (200000*3) N.P before remuneration: 488000 (Int. on capital is allowable upto 12%) Therefore, For First 3,00,000 profits, 90% or 1,50,000 w.e is higher, i.e 2,70,000 & on above 300000 60% of profit, i.e 1,88,000*60% =1,12,800 Total remuneration=112800+270000 =3,82,800 .....for partner c : 3,82,800/3 = 1,27,600 !!!