My client is a partner in two partnership firms with separate PAN and address. My query is can he draw 1) salary as partner from both firms 2) Share of profit from both firms 3) Interest on capital from both firms.
16 January 2018
Yes partner can claim Salary, Interest on capital and share of profit from more than one firm but same to be shown separately and clubbed the income from partnership firm Together to arrive taxable income, Share of profit is exempted income in Itr 2 If you fill the details under share of profit its automatically consider under exempted income.
17 January 2018
1) There is no prohibition ,as you know, in the act. But, if question arises, partner should establish that he/she is 'working partner' in both that firms.
2) Can earn share of profit from more than one firm.
3) Can claim interest on capital as evidenced by an instrument of partnership.
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