INCOME TAX · LLPS AND PARTNERSHIPS
Partners’ Remuneration and Interest: Deduction Limits, TDS and Examples
Calculate the working-partner remuneration ceiling, understand the 12% interest limit and avoid common deed and TDS mistakes.
By Vyapar Setu Online | LLPs and partnerships · 28 October 2026
Business Income Tax series · LLPs and partnerships · Article 16 of 27
A partnership firm can pay its partners for work and for capital, but the amount paid and the amount deductible for tax are not always the same. Check authorisation, eligibility, limits and withholding separately.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
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