Stamp Paper for partnership firm change new income tax 2025
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16 April 2026
sir,
Is there is need to change partnership deed on new stamp paper due to substitute of Income tax Act ,1961 to New Income Tax Act,2025. As Act as well as partnership interest and remuneration clause has been changed. Interest and remuneration to partner in erstwhile Act were allowed under section 40 (b) whereas in new Income Tax Act ,2025 these are allowed under section 35 (e) - Stamp Paper
Is there is need to change partnership deed on new stamp paper due to substitute of Income tax Act ,1961 to New Income Tax Act,2025. As Act as well as partnership interest and remuneration clause has been changed. Interest and remuneration to partner in erstwhile Act were allowed under section 40 (b) whereas in new Income Tax Act ,2025 these are allowed under section 35 (e) - Stamp Paper
16 April 2026
You do not necessarily need to execute a brand-new partnership deed on new stamp paper solely because of the transition from the Income-tax Act, 1961 to the Income Tax Act, 2025.
However, you likely should execute a Supplementary Deed on new stamp paper to update your remuneration and interest clauses to ensure you can claim the newly increased deduction limits.
However, you likely should execute a Supplementary Deed on new stamp paper to update your remuneration and interest clauses to ensure you can claim the newly increased deduction limits.
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16 April 2026
Under standard "Repeal and Savings" provisions (Section 536 of the new Act), references to Section 40(b) in existing deeds will generally be read as referring to the corresponding Section 35(e) of the Income Tax Act, 2025.
Your current deed remains legally valid for defining the relationship between partners.
To claim the higher deduction limits (e.g., the revised ₹3,00,000 threshold instead of ₹1,50,000), tax authorities often require the deed to explicitly authorize the specific amounts or the specific "current" Act's limits.
Your current deed remains legally valid for defining the relationship between partners.
To claim the higher deduction limits (e.g., the revised ₹3,00,000 threshold instead of ₹1,50,000), tax authorities often require the deed to explicitly authorize the specific amounts or the specific "current" Act's limits.
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16 April 2026
You should execute a Supplementary Deed (which requires new stamp paper) if:
If your current deed says "Salary of ₹10,000 per month," you cannot claim a higher amount under the new Act without an amendment.
While legally "saved," having a deed that refers to a repealed Act can lead to administrative hurdles with banks, the Registrar of Firms, or during tax audits.
The 2025 Act increases the allowable remuneration. To maximize this tax benefit, a supplementary deed should be executed to align with the new limit structure.
If your current deed says "Salary of ₹10,000 per month," you cannot claim a higher amount under the new Act without an amendment.
While legally "saved," having a deed that refers to a repealed Act can lead to administrative hurdles with banks, the Registrar of Firms, or during tax audits.
The 2025 Act increases the allowable remuneration. To maximize this tax benefit, a supplementary deed should be executed to align with the new limit structure.
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