Amendment of section 40

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....- '(b) in the case of any firm assessable as such,- (i) any payment of salary, bonus, commission or remuneration, by whatever name called (hereinafter referred to as remuneration) to any partner who is not a whole-time working partner; or (ii) any payment of remuneration to any partner who is a whole-time working partner, or of interest to any partner, which, in either case, is and authorised by, or is not in accordance with, the terms of the partnership deed; or (iii) any payment of remuneration to any partner who is a whole-time working partner, or of interest to any partner, which, in either case is authorised by, and is in accordance with, the terms of the partnership deed, but which relates to an....

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.... of 40 per cent .; (2) in the case of any other firm - (a) on the first Rs. 50,000 of the book-profit at the rate of 75 per cent.; (b) on the next Rs. 50,000 of the book-profit at the rate of 50 per cent.; (c) on the balance of the book-profit at the rate of 25 per cent. Explanation 1 .- In this clause, - (a) "whole-time working partner" means a partner of the firm who is in receipt of any remuneration from the firm for services rendered to that firm and who is not in receipt of any similar remuneration from any other person; (b) "book-profit" means the profit which would have been computed in accordance with the provisions of Parts II and III of the Sixth Schedule to the Companies Act, ....

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....e 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, Explanation 3.- 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; (ba) in the case of an association of persons or body of individuals [other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to th....