business or professional income
Sajan Shukla (56 Points)
06 October 2018
remuneration from partnership is a business or professional income.??
5 Replies
PUNEET MIDDHA
(will update it soon)
(69 Points)
Replied 06 October 2018
business maybe.. because is considered as something leart..like ca, llb or interior designer etc
Sajan Shukla
(56 Points)
Replied 06 October 2018
will a CA being a partner of CA firm... remuneration and interest income from that firm will be his professional or business income
CA Rakesh Joshi
(Chartered Accountant )
(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.
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