Profit from partnership & propritporship
This query is : Resolved
12 August 2011
I am a proprietor in a ABC where I get an income of Rs. 2.5 lacs , along with that I am a 50% partner in XYZ where my share of profit from partnership is Rs.10 lacs (total xyz profit is 20 lacs). I want to know my tax liability .
Do we include the total profit for calculation of taxable income and then reduce the tax n partnership profit (as in the case of agricultural income) or its 100% exempt.
Please reply asap
Thnx in Advance
Do we include the total profit for calculation of taxable income and then reduce the tax n partnership profit (as in the case of agricultural income) or its 100% exempt.
Please reply asap
Thnx in Advance
CA Ashwani Agarwal
(Expert)
12 August 2011
Partnership profit is 100% exempt in the hands of the partner because the same is taxable in the hands of the FIRM.
But if you have received any salary or ant interest from the partnership then the same is taxable in your hands.
But if you have received any salary or ant interest from the partnership then the same is taxable in your hands.
Message likes :
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12 August 2011
@ashwani thnx a lot
Please explain the tax calculation of this example so it will make it clear
Thnx...
Please explain the tax calculation of this example so it will make it clear
Thnx...
CA Ashwani Agarwal
(Expert)
12 August 2011
Income 2.5 lakhs.
Tax Calculation:-
Upto 160000 - NIL
Next 90000 - 9000
Total tax 9000 + 3% EC & SHEC.
Partnership profit is exempt.
Tax Calculation:-
Upto 160000 - NIL
Next 90000 - 9000
Total tax 9000 + 3% EC & SHEC.
Partnership profit is exempt.
Message likes :
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12 August 2011
Share of profit from partnership firm (Rs. 10/-lakhs) is an exempted income under section 10 (2A) of the IT Act,1961.
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