head of income
One of My client is a partner in a firm, from which he is getting Salary. Under which head of income his income is to be shown, business or Profession?
Salary, Commission or any other income received by a partner from firm in which he is a partner will be taxed under the head "Income from Business and Profession" as per section 28.
Partnership firm can claim these as expenses however subjected to limitation specified.
As per section 28(v) of Income tax act, any interest, salary,bonus, commission or remuneration, by whatever name called, received by a partner of the firm from such firm should be shown under the head 'Profit and gain of business or profession'
So, salary received by partner should be shown as business income.