Remuneration to Partners – Limits Revised u/s 40(b)

Budget 2024 has doubled the base limits for calculating allowable remuneration:

Old limits:
• Negative book profit → ₹1,50,000
• Positive book profit (up to ₹3L) → Higher of ₹1.5L or 90%
• Balance → 60%

New limits:
• Negative book profit → ₹3,00,000
• Positive book profit (up to ₹6L) → Higher of ₹3L or 90%
• Balance → 60%

Applies to Firms & LLPs from AY 2025-26.

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How Can you Convert a Partnership Firm into an LLP?

You convert a Partnership Firm into an LLP. In this article, we have explained the Process of Converting a Business Firm from a partnership to an LLP in detail

Click Here: https://www.setindiabiz.com/learning/convert-partnership-firm-into-llp

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