02 December 2014
An individual is a partner in a firm he receives his 50% profit share and he is paid a remuneration around 213000 as calculated under the law. As I know that the share is exempted. Where shall I declare this remuneration received ? in My current account or directly in computation of income ? is this a taxable income? what all can I deduct to get this exempted from tax.
02 December 2014
Remuneration is TAXABLE under income from business or profession. The expenses in connection with acquiring the said income may be claimed as expenses.
03 December 2014
Dear Mr. Amol S. Joglekar correct yourself, as per section 10(2A) income tax act PROFIT RECEIVED BY PARTNER FROM FIRM IS EXEMPT FROM INCOME TAX.
You may once incuded in the computation and thereafter claim exemption under section 10(2A)
03 December 2014
Let us NOT get confused with the word REMUNERATION. Share of profit is exempt under the section RIGHTLY quoted as above. Remuneration to partner is different than Share of Profit.
CAclubindia
