Remuneration limits for working partners increased under section 40 amendment, raising allowable deduction thresholds for firms. Amendment increases the remuneration limit for working partners under the disallowance rule in section 40(b)(v) by raising the fixed-amount allowance applicable to the first portion of book profit and preserving the alternative percentage-based benchmark; the comparative rule between the fixed allowance and the percentage of book profit is accordingly adjusted. The change is effective for the fiscal period commencing April 1, 2025 and applies to the subsequent assessment year.
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Remuneration limits for working partners increased under section 40 amendment, raising allowable deduction thresholds for firms.
Amendment increases the remuneration limit for working partners under the disallowance rule in section 40(b)(v) by raising the fixed-amount allowance applicable to the first portion of book profit and preserving the alternative percentage-based benchmark; the comparative rule between the fixed allowance and the percentage of book profit is accordingly adjusted. The change is effective for the fiscal period commencing April 1, 2025 and applies to the subsequent assessment year.
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