17 May 2016
Profit share is exempted because firm has already paid tax on gross profit.when tax already paid why anyone wants to pay tax for second time.
17 May 2016
profit from firm is share to partner after discharge of tax in the hands of Firm balance is available for appropriation. So share of profit exemption u/s 10(2A). Share of profit already suffered maximum tax so exempt under hand of partner.
CAclubindia
