Profit earned during the year by a partnership firm is ₹1,40,000. The maximum amount of remuneration deductible from profit is —

Correct answer: (A) ₹1,50,000. For the first 3 lakh of book profit, deductible partner remuneration is the higher of 1,50,000 or 90% of book profit. Here the maximum is 1,50,000. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.