Partners’ remuneration income refers to the earnings received by partners from a partnership firm, either as a salary, commission, or profit share. The remuneration is typically paid to partners for their managerial or operational role in the firm, and its structure is governed by the partnership agreement. Under the Income Tax Act, 1961, partners’ remuneration is allowed as a deductible expense for the firm, subject to limits specified under Section 40(b). For partners, the share of profits received is generally exempt from tax in their hands, while salary, commission, or fees received is taxable as “Income from Business or Profession.” Accurate accounting, board approvals (if applicable), and proper documentation are essential to ensure compliance. Firms are required to maintain detailed records of payments made to partners and calculate allowable deductions correctly. Timely reporting and filing help avoid penalties, interest, and scrutiny from tax authorities. Professional guidance is recommended for structuring remuneration, computing deductions for the firm, and reporting taxable income for partners to maintain transparency, compliance, and effective tax management.