What is meant By Renumeration According to the Income Tax ACT 1961 U/S 40(b)( i ), the word renumeration referred to any payment of salary. bonus, commission, or renumeration whatever name called . Calculation of Partner’s Salary / Renumeration Renumerations are only allowed for partners who is working partner in the firm according to the partnership Deed. If the partner is not a working partner then it is not allowed to deducted in computing the income chargeable under the head “ Profit and Gains on Business or Profession ”. Any payments as Salary must be authorized and according to the terms of partnership deed. Payment of Renumeration to any partner who is a working partner must be as follows. on the first Rs.- 3,00,000 of book profit or loss :- 1,50,000 or the rate of 90% of the book profit which ever is more on the balance of the book profit at the rate of 60% Calculation of Capital Interest Any payment as interest must also be authorised and ac...