As the partnership deed lays down the manner of quantifying the remuneration which is as per the limits specified under The Income Tax Act, the firm has to follow IT provisions for giving remuneration to its Partners.
The deduction for remuneration can be claimed u/s 37 but subject to conditions laid down by sec. 40(b).
According to sec.40(b):---
> Any payment to non working partner as remuneration will be disallowed.
> Payment to working partner will be allowed if it is in accordance with Partnership Deed.
> The deduction for payment to working partner shall be allowed to the extent provided in deed but subject to maximum limit on Book Profit(BP) prescrived in the IT Act.
@ in case of loss---------- --------------- Up to Rs.1,50,000
@ on first Rs.3,00,000 of BP ------- 90% of book profit or Rs.1,50,000 whichever is more
@ on balance of BP ------------------------ 60% of BP
i. e. in your case it will be Rs.100.
From above provisions and discussions it can be said that (Assuming all are working partners) THE FIRM CAN PAY Rs. 60 WHICH IS LESS THAN LIMIT (Rs.100). And there is no restriction on payment of less remuneration than the limit provided by prtnership deed and It Act. Thus the firm is not bound to Pay Minimum of Rs.100 as Remuneration.