(e)the expenditure incurred by a firm, assessable as such––(i)in the nature of salary, bonus, commission or remuneration, by whatever name called (herein referred as remuneration) to a partner, who is not a working partner; or(ii)on the remuneration to a working partner, and interest to any partner, if it is––(A)not authorised by the partnership deed applicable for the period for which such remuneration or interest is paid; or(B)authorised by and is as per the terms of partnership deed but relates to the period prior to the date of such partnership deed, or which was not authorised by the earlier partnership deed; or(iii)on the aggregate remuneration to all working partners as authorised by the partnership deed, exceeding the amount computed as under:––(A)on the first ₹600000 of the book profit or in case of a loss, ₹300000 or at the rate of 90% of the book profit, whichever is higher;(B)on the balance of the book profit, at the rate of 60%; or(iv)on interest to any partner as authorised by the partnership deed, exceeding 12% simple interest per annum, so, however, that—(A)where an individual is a partner in a firm, on behalf, or for the benefit, of any other person (such partner and the other person being herein referred to as "partner in a representative capacity" and "person so represented", respectively),—(I)interest paid by the firm to such individual otherwise than as partner in a representative capacity, shall not be taken into account for the purposes of this clause;(II)interest paid by the firm to such individual as partner in a representative capacity and interest paid by the firm to the person so represented shall be taken into account for the purposes of this clause;(B)where an individual is a partner in a firm otherwise than as partner in a representative capacity, interest paid by the firm to such individual shall not be taken into account for the purposes of this clause, if such interest is received by him on behalf, or for the benefit, of any other person;(v)in this clause––(A)"book profit" means the net profit, as shown in the profit and loss account for the relevant tax year, computed as per Chapter IV-D as increased by the aggregate amount of the remuneration to all the partners of the firm, if such amount has been deducted while computing the net profit;(B)"working partner" means an individual who is actively engaged in conducting the affairs of the business or profession of the firm of which he is a partner;
