Profit of firm mentioned in ITR of partner

There is no provision regarding Share of Profit of the Partner in Form 16. But Yes, While filing return in ITR 4S( Applicable for Income from Partnership ), You have to mention the Share of profit of Partner from the partnership firm along with the Remuneration received.

So that way while availing Bank Loan, The Bank Officials can get full detail about the Ceiling of the Assessee who is a Partner

Originally posted by : Ramanujan
	Namaskaar, Is there a provison for the profit of a partnership firm to be mentioned in the Form-16 or IT-Return of the partner? As we already know, the profit shared between the partners is not taxable in the hands of the partners. But can the profit share received by each partner be mentioned in their Form-16 or IT-Return (as non-taxable income)? This way the partner can show his share of profit as income that he has got to the bank when availing a loan. Otherwise only the remuneration that the partner receives will be shown and since the remuneration has a upper ceiling set by the law, not everything can be given to the partner as remuneration. Is there such a provison? Or is there any other way the partner can present his profit share as income to the bank? Regards, Rama

In income tax return of the partner (ITR-3), share of profit from the partnership firm is to be shown under two different schedules.
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Firstly under “Schedule IF” - Information regarding partnership firms in which you are partner.
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(Here, name of the Firm, PAN of the firm, whether firm is liable for audit, % of SoP, amount of SoP, closing capital balance shall be mentioned.)
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Secondly, under “Schedule EI” - Details of Exempt Income.
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Here, SoP shall be mentioned in Sl. No. 5, “Share in the profit of firm/AOP/BOI etc.”