Standard deduction of 40000
Ankit Agarwal (student) (73 Points)
26 September 2019
Can a partner can take standard deduction on salary he received from firm?
13 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2019
If he is received salary as per sec 17(1) then yes he can claim that std deduction .
Kapadia Pravin
(17259 Points)
Replied 26 September 2019
NO STANDARD DEDUCTION IS AVAILABLE.
Salary received from firm is treated as PGBP in the hands of partner.
Salary received from firm is treated as PGBP in the hands of partner.
Ankit Agarwal
(student)
(73 Points)
Replied 26 September 2019
What salary as per sec 17(1) include or means?
As in my case partner is getting 30000 pm salary
As in my case partner is getting 30000 pm salary
Ankit Agarwal
(student)
(73 Points)
Replied 26 September 2019
Then his salary which be shown under which heads of income while preparing computation?
Kapadia Pravin
(17259 Points)
Replied 26 September 2019
NO STANDARD DEDUCTION IS AVAILABLE.
Salary received from firm is treated as Business Income (under profits and gains from business ) by the Partner.
(ITR5 - schedule BP)
Salary received from firm is treated as Business Income (under profits and gains from business ) by the Partner.
(ITR5 - schedule BP)
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 September 2019
(As in my case partner is getting 30000 pm salary )
If the salary (remuneration) received from partnership firm then it's not under the head of Salaries...
in case the partner earn salary from any other way (for working employee) then he can avail such deduction...
If the salary (remuneration) received from partnership firm then it's not under the head of Salaries...
in case the partner earn salary from any other way (for working employee) then he can avail such deduction...
Kapadia Pravin
(17259 Points)
Replied 27 September 2019
Salary is payable to working partner only.
It can't be paid to non-working partners.
It can't be paid to non-working partners.
sabyasachi mukherjee
(27579 Points)
Replied 12 October 2019
Ankit you hv not mentioned whether partner has profit sharing ratio or not .
He may be salaried partner.
If salaried then he can claim standard deduction.
The employer is bound to furnish form 16.
He may be salaried partner.
If salaried then he can claim standard deduction.
The employer is bound to furnish form 16.
Ankit Agarwal
(student)
(73 Points)
Replied 13 October 2019
He is having 1/3 share in firm and is working partner only
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 13 October 2019
1. As per sec 28(v), if a partner is in receipt of salary, interest, bonus, commission or remuneration, by whatever name called will be taxable in the hands of such partner as business income.
2. Hence, the salary received from his own firm will be taxable as business income and the standard deduction will not be available for such salary income.
3. The standard deduction will be applicable only for a salaried employee (Employer and Employee relationship)
4. In your case, the standard deduction will not be applicable for salary received from a firm in which you are a partner.
5. The share of partnership does not matter in this scenario.
Please correct me if the above solution has an alternative view.
sabyasachi mukherjee
(27579 Points)
Replied 13 October 2019
So Ankit now its clear if you are having 1/3 profit share then u cannot claim standard deduction.
Mr.Suresh u are absoloutely correct.
Mr.Suresh u are absoloutely correct.
Ankit Agarwal
(student)
(73 Points)
Replied 13 October 2019
| Originally posted by : sabyasachi mukherjee | ||
 |
So Ankit now its clear if you are having 1/3 profit share then u cannot claim standard deduction.Mr.Suresh u are absoloutely correct. |  |
Thanks sabyasachi ji
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