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exemption of partner's share of profit

koriya vaishali (37 Points)

03 December 2018

How much exemption is available as a business income to partner in his share of profit obtained from partnership firm??

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Z ( ) (2965 Points)
Replied 03 December 2018

All but Salary, remuneration, interest & commission shall be chargeable.

S.10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included—

(2A) in the case of a person being a partner of a firm which is separately assessed as such, his share in the total income of the firm.

Explanation.—For the purposes of this clause, the share of a partner in the total income of a firm separately assessed as such shall, notwithstanding anything contained in any other law, be an amount which bears to the total income of the firm the same proportion as the amount of his share in the profits of the firm in accordance with the partnership deed bears to such profits.