Kshitij Saxena (CA Final) (256 Points)
12 July 2009Suppose if there is some person X drawing salary from his business(suppose all of this was allowed under IT Act as partner's remuneration) what will be the rate at which he has to pay tax on this salary income. Does the slab of an individual will apply?
This salary will be shown as salary or PGBP in his ITR?
Will your answer differ if this is a case of a professional?
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 12 July 2009
1)At Slab Rates
2)Income from Business or Profession
3)No.
Sunali
(Learner)
(1317 Points)
Replied 12 July 2009
| Originally posted by :Ksh*tij Saxena | ||
| " | Suppose if there is some person X drawing salary from his business(suppose all of this was allowed under IT Act as partner's remuneration) what will be the rate at which he has to pay tax on this salary income. Does the slab of an individual will apply? This salary will be shown as salary or PGBP in his ITR? Will your answer differ if this is a case of a professional? |
" |
As far as a partner is concerned, he is assessed in his individual status apart from his Firm, so the tax rates applicable to an individual will apply to his taxable income. The salary drawn by the partner is assessed as his Business Income.
The answer won't differ in case of a professional as the relationship of employer-employee doesn't exist between the partner and firm.
CA Vinay Saraf
(CA)
(148 Points)
Replied 12 July 2009
as per sec 28 it is specifically provided that any remuneratuon drawn by partner from his firm will be taxable as his business income.
as regards taxability he is individual so slab rate is applicable.
no cahnge if is profeesional also
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 12 July 2009
Yes all the above are right. It wiil be taxable as income from business & profession and will be taxed at the slab rates applicable to it. The rate of distribution of salary has also been increased in the budget for the current year.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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