A private CA firm — not MCA, the Income Tax Department or any government body. Tool results are not advice until a CA reviews them.
MakeItLegit tools · practice structure
Who owns the practice changes what the family keeps.
For a clinic or professional practice where one spouse practises and the other puts in the money. Move the sliders: five years of cash, loan repayments and tax are recalculated in your browser. Nothing you enter leaves this page.
Extra cash at the low point
beyond the loan and family money, in the leanest month
Break-even
patients needed to cover costs and the EMI; you plan 20.8
Family cash kept, 5 years
across the structures if pay is not clubbed; the chart shows clubbed too
Tax audit from Year 5: takings pass ₹50 lakh (s.63).
Family cash kept over 5 years, by structure
₹ lakh, after every tax the family pays. Same practice in every row; only the structure changes. Tap a row for the detail.
Figures at the right: not clubbed / clubbed. With 20% or more of the profits, the funding spouse is taxed on her pay unless it comes solely from her professional qualification (s.99(1)(a)(i)). Plan for both ends.
Who pays what
LLP, pay to practitioner + interest to funder · pay not clubbed
| ₹ lakh | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Profit before family payments | −3.5 | 16.8 | 22.5 | 25.2 | 27.9 |
| Pay to practitioner | 3.0 | 11.5 | 14.9 | 16.5 | 18.0 |
| Interest to funding spouse | 0.0 | 0.6 | 0.6 | 0.6 | 0.6 |
| Entity's tax | 0.0 | 0.0 | 1.6 | 2.5 | 2.9 |
| Practitioner's tax | 0.0 | 0.0 | 1.1 | 1.4 | 1.7 |
| Funding spouse's extra tax | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 |
- An LLP agreement with the same pay and interest clauses (s.35(e)), and two designated partners (LLP Act 2008 ss.6–7).
- LLP debts are met from LLP property; a partner is not liable for another's wrongful act (LLP Act ss.27–28). Lenders may still ask for guarantees.
What moves the answer
Each input 20% lower (top bar) and higher (bottom bar), all else fixed: change in 5-year family cash kept for “LLP, pay to practitioner + interest to funder”, ₹ lakh.
The practice's cash, month by month
Opening money (loan + family funds − equipment), then each month's takings less running costs and loan repayments, before tax.
Low point, month 9: −2.8 lakh
Profit and loss
| ₹ lakh | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Takings | 19.5 | 40.7 | 46.2 | 48.5 | 51.0 |
| Running costs | 19.8 | 21.2 | 21.5 | 21.6 | 21.7 |
| EBITDA | −0.3 | 19.5 | 24.7 | 26.9 | 29.3 |
| Depreciation | 2.3 | 1.9 | 1.6 | 1.4 | 1.2 |
| Bank interest | 1.0 | 0.8 | 0.6 | 0.4 | 0.1 |
| Profit before family payments | −3.5 | 16.8 | 22.5 | 25.2 | 27.9 |
| Loan principal repaid | 0.9 | 1.9 | 2.2 | 2.4 | 2.6 |
What the numbers rest on
- Clubbing: with 20% or more of the profits, the practitioner's salary or remuneration is added to the funding spouse's income unless it comes solely from her professional qualification (s.99(1)(a)(i), Income-tax Act 2025). Evidence: her qualification and registration, treatment logs, hours.
- Pay must also be reasonable for the work; an excessive payment to a partner or relative is disallowed (s.36(2) and (3)).
- Partner pay is allowed only up to the book-profit limit and only if the deed fixes it in advance; interest to any partner is capped at 12% (s.35(e)).
- A gift or interest-free loan from one spouse to the other: income from it is added back to the giver (s.99(1)(a)(ii)); if she puts it into her business, in proportion to her capital (s.99(2)).
- Rates: slabs, rebate and standard deduction under ss.202(1), 156(2) and 19; firm 30% and company 25% with surcharge and 4% cess under the Finance Act 2026; depreciation 15% (Income-tax Rules 2026, Appendix I); tax audit above ₹50 lakh of takings (s.63).
- Loan: interest-only for the moratorium months, then equal monthly instalments over the rest of the term. Not modelled: dividend tax, GST, state clinic registration, advance-tax timing.
Illustrative estimates from your inputs and the stated assumptions. This tool does not decide which structure is open to your profession and is not personalised tax advice. Taxes are counted in the year they arise; equipment value left at the end of Year 5 is not counted.
Common questions
Practice structure, statute-cited.
Why does the funding spouse's share of profits matter?+
Clubbing under s.99(1)(a)(i) of the Income-tax Act 2025 adds the practitioner's pay to the funding spouse's income only when the funding spouse has a substantial interest: at least 20% of the profits of a firm, LLP or proprietorship, or at least 20% of the voting power of a company (the tool uses the same slider for both). Pay that comes solely from her professional qualification is not clubbed. Below 20% the tool shows no clubbed figures.
Does it matter whether the money goes in as capital, a loan or a gift?+
Yes. Interest on a partner's capital or loan is deductible up to 12% (s.35(e)). A gift, or an interest-free loan, between spouses brings the income from it back to the giver (s.99(1)(a)(ii)); if it is put into her own practice, in proportion to her capital (s.99(2)).
Why is the company row split into a solid and a dashed line?+
The solid part is cash the family can use after tax. The dashed part is profit left in the company after its tax: paying it out as dividends is taxed again, which this tool does not model.
Is any of my data saved?+
No. The calculation runs in your browser. Nothing you enter is sent to a server or stored.