Tax Consultant
20 Points
Posted on 20 August 2026
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:
- In SCHEDULE P&L: Remove the amount from Line 24 (Salary)
- Enter the SAME AMOUNT in LINE 14(XI)(c) , this is the correct field for partner remuneration
- The total in Schedule IF must EXACTLY MATCH what you enter in Line 14(XI)(c)
- 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.