Our partnership firm profit 288473 & paid IT 90003/-. We are 2 partner and share is 50%.
my question is above profit share after deduction of income tax or not. normal profit share is 144237/- & after tax is 99235/-. Which method is correct and the said share is taxable or exempt in our individual ITR. If exempt so which section of ITR-3 we claim the same.
22 December 2019
INCOME TAX PAID IS NOT AN EXPENSE FOR THE ORGANISATION....IT IS APPROPRIATION OF PROFIT SO SHARE OF PROFIT IS BEFORE INCOME TAX SHOULD BE TAKEN. YES IT IS TAX FREE IN HAND OF PARTNERS. SHOW UNDER SEC 10 EXEMPT INCOME IN INDIVIDUAL INCOME TAX RETURN OF PARTNER.
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