Remuneration in partnership

This discussion clarifies the rules around partner remuneration within a partnership deed. While there isn't a strict upper limit on the amount partners can draw, tax regulations, particularly Section 40(b), impose limits for deductibility. Special attention is given to NRI partners, where Double Taxation Avoidance Agreements (DTAA) and Tax Deducted at Source (TDS) provisions are crucial to consider. The advice suggests fixing remuneration based on expected profits and individual tax situations.