head of income - Professionals - Taxation - TIK Share
0 Likes 245 Views

head of income


Ankit Sharma

2015-07-06

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?

Rahul Rai

2015-07-06

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.

Reply

Ankit Sharma

2015-07-06

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.

Reply