New Remuneration Clause Applicable from which Assessment Year 2025-26 OR 2026-27 ?

This discussion clarifies the applicability of a new remuneration clause under the Indian Income Tax Act. Previously, 90% of book profits up to £3 lakh were distributed among partners. This threshold has now increased to £6 lakh. The key question is whether this change necessitates updating the partnership deed in the current financial year or the next, with the consensus being that it applies from the date of the deed change, even for the current financial year.