ERROR SHOWING PARTNER REMUNERATION ITR 3 TIME OF VERIFICATION

SIR I FILL PARTNER REMUNERATION IN SL NO.24 UNDER SALARY AND ALSO SHOWING IN SCH IF

BUT WHEN I SUBMIT RETURN SHOWING ERROR IN SCHEDULE IF TOTAL AMOUNTOF REMUNERATION DUE OR RECEIVEDIS MORE THAN SL NO.14xi(c) of schedule profit & loss account

what can i di sir

Replies (2)
Quick Summary
This discussion addresses a common ITR-3 error where partner remuneration is incorrectly entered under 'Salary' instead of the dedicated 'Remuneration paid/payable to working partners' line (Schedule P&L, Line 14(xi)(c)). The solution involves moving the remuneration amount to the correct P&L line and ensuring the figure in Schedule IF matches precisely. It also highlights the importance of adhering to Section 40(b) limits for deductibility, as exceeding these can also cause verification problems.

This is a COMMON ERROR in ITR-3 for partnership firms. The fix is straightforward:

THE ISSUE: You entered partner remuneration in P&L Line 24 (Salary, Wages and Bonus), but the ITR-3 portal expects partner remuneration to appear in a DIFFERENT P&L line: SCHEDULE P&L LINE 14(XI)(c) which is specifically 'Remuneration paid/payable to working partners (allowable under Section 40(b))'

THE FIX:

  1. In SCHEDULE P&L: Remove the amount from Line 24 (Salary)
  2. Enter the SAME AMOUNT in LINE 14(XI)(c) , this is the correct field for partner remuneration
  3. The total in Schedule IF must EXACTLY MATCH what you enter in Line 14(XI)(c)
  4. Also ensure the remuneration is within the 40(b) limit: Book profit up to Rs 3 lakh , 90% or Rs 1.5 lakh (higher); Book profit above Rs 3 lakh , Rs 1.5 lakh + 60% of excess

CHECK THE 40(b) CEILING: If remuneration claimed exceeds Section 40(b) limits, the excess will be disallowed , this can also trigger the mismatch error if Schedule IF reflects the claimed amount but P&L auto-reduces it to allowable amount.

After making these corrections, re-validate and the error should clear.

THANKS FOR YOUR ADVICE

 

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