Question on Schedule EI

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Dr. Jones (Querist)
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27 September 2009 Hi,

I am refering to Schedule EI of ITR-4 form.

It mentions of Exempt Income. Point 5 has 'Share in Profit of Firm/AOP'.etc.

My question is:

(1) Does 'Firm' refer to Partnership firm only?

(2) Does it mean that all the income from the Firm/AOP is totally tax free?

I really appreciate you for going through my question and answering it.

Many thanks!

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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27 September 2009 Answers

1) Yes

2) As profit of Firm/AOP is taxable in the hand of Firm/AOP, share of profit received is tax free in the hands of partners of the firm.

Dr. Jones

Dr. Jones (Querist)
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27 September 2009 Great. Thanks for the quick reply.

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