business or professional income
Sajan Shukla (56 Points)
06 October 2018
remuneration from partnership is a business or professional income.??
Sajan Shukla (56 Points)
06 October 2018
PUNEET MIDDHA
(will update it soon)
(69 Points)
Replied 06 October 2018
Sajan Shukla
(56 Points)
Replied 06 October 2018
Rakesh Joshi
(CA Final)
(1272 Points)
Replied 06 October 2018
As per Secton 28(v) any Income received by a partner by whatever name called from a partnership firm will be treated as business income and not professional income.
Example : If you receive salary from a firm it is not taxed under salary head but treated as business income due lack of substance of employer employee relationship.
Since professional income arises because of use of skill, knowledge and expertise of a person, the income received from a firm is not to be categorised as use of personal skill, knowledge or expertise.
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
