SANDEEP SINGH (CA) (34 Points)
05 March 2010
1)partner's salary to be taxable under which head?
2)whether prof. tax and tds will be deducted or not, if yes then how much amount and what %age will be deducted if salary is 50,000/month? 
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 05 March 2010
Partners salary shall be taxable under the head "Business & profession."
regards,
ratan
Vivek Angrish
(Manager Finance & Accounts)
(232 Points)
Replied 05 March 2010
Partner's salary is taxable and the Tax is to be deducted, now what amount of tds is to be deducted on Rs. 50000/- p.m can't be ascertained as there is no breakup of the salary is given and also the savings of the partners is not mentioned
Max Payne
(employed)
(2574 Points)
Replied 05 March 2010
Hello, partners salary and interest is income from business and profession.
No PT or TDS deduction on salary to partner,
cos there is no employer-employee relation between firm and partners.
Vivek Angrish
(Manager Finance & Accounts)
(232 Points)
Replied 05 March 2010
Yes you are right, i am wrong in this case. Sorry for this
CA. ANKUR
(ASST. MANAGER ACCOUNTS)
(54 Points)
Replied 05 March 2010
Sandeep
If your question is from point of view of individual who is a partner then for him salary form firm will be classified under salary but no tax will be deducted as it is exempted
no tds or professional tax is to be deducted for the same.
CA.Dheenadayalan.R
(Chartered Accountant)
(156 Points)
Replied 05 March 2010
Yes I agree with ANKUR......
Gita Iyer
(Specialist)
(135 Points)
Replied 05 March 2010
Salary received by a partner from his partnership firm carrying on business such income is taxable under the head Profits and Gains from Business and Professions, as such salary is claimed in P/L and accordingly taxed.
C.Balaji
(Learner)
(1867 Points)
Replied 05 March 2010
Agree with G.K....sorry Ordinarily resident Evil
Partners salary and interest is income from business and profession.
No PT or TDS deduction on salary to partner,
No employer-employee relation between firm and partners.
Gita Iyer
(Specialist)
(135 Points)
Replied 05 March 2010
prof tax and tds will not be deducted as the same is business income in the hands of the partner
CA CMA Amarnath Nuthalapati
(Chartered Accountant)
(81 Points)
Replied 05 March 2010
Partners Salary is Taxable under the head Business or Profession: and Shown as Special Business Income
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 05 March 2010
Agree with Ordinarily resident Evil
Partners salary and interest is income from business and profession.
No PT or TDS deduction on salary to partner,
No employer-employee relation between firm and partners.
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 05 March 2010
Salary and Interest on capital from partnership firm will be taxed under the head Business or Profession.
NO TDS and PT will be deducted.
Tarun
(CA Practice )
(166 Points)
Replied 05 March 2010
Hi,
Partner's salary is allowed deduction to the firm within prescribed limits u/s 40(b) of the IT Act. The same is taxable as income u/h PGBP.
Further no TDS is to be deducted as the partner is not related to the firm in the capacity of an employee.
CAclubindia
