Partner remuneration deductions require deed authorisation, working-partner status, and book-profit ceilings; unauthorised or excess payments are disallowed.

Section 35(e) restricts deductions for payments to partners where remuneration is paid to non-working partners, payments are not authorised by the applicable partnership deed, or remuneration exceeds the statutory ceiling. Interest authorised by the deed is deductible only up to 12% simple interest per annum, subject to rules distinguishing individual and representative capacities. Working-partner remuneration is deductible only within the book-profit-based ceiling. The partnership deed must specify each working partner's remuneration or provide a method for quantifying it.

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