If the book profit of a partnership firm is ₹ 1,10,000, the remuneration admissible to working partners…

Under the Income-tax Act, 2025 (formerly section 40(b)(v) of the Income-tax Act, 1961, as amended by the Finance (No. 2) Act, 2024), the maximum permissible deduction for remuneration to working partners on the first Rs. 6,00,000 of book profit (or in case of a loss) is Rs. 3,00,000 or 90% of the book profit, whichever is more, and 60% of the balance of the book profit. Given book profit of Rs. 1,10,000, 90% of book profit is Rs. 99,000; since Rs. 3,00,000 is higher than Rs. 99,000, the admissible remuneration limit is '₹ 3,00,000'. (The earlier limit was Rs. 1,50,000 on the first Rs. 3,00,000 of book profit.)