Remuneration for partnership firm u/s 40(b) to be disallowed:

Broadly, section 40(b)(v) says that if  below limits are exceeded , the excess will be disallowed:

(a) on the first Rs.3,00,000 of the book-profit or in case of a loss Rs.1,50,000 or at the rate of 90 per cent. of the book-profit, whichever is more;

(b) on the balance of the book-profit at the rate of 60 per cent.

 “book-profit” generally means profit before giving remuneration

Regards, mr.kunjan shah, 9820750784 or 022-64500000 (landline).