Separate assessment for partner of a firm.

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Partha Pratim Sahoo (Querist)
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03 November 2013 Will a partner of a firm be assessed again to determine his taxable income after assessment of his firm's income? If yes, income of the firm is taxed twice, firstly in the hands of the firm and secondly in the hands of such partner. Isn't it?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 November 2013 i) Share of profit of a partner is exempted u/s. 10(2A) of the Income tax Act,1961. Hence, income is not taxed twice.

ii) If salary and or interest is paid by the firm to the partner, it is assessed in the hands of the partner being an allowable expense for the firm subject to the limits u/s 40(b) of the said act.

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Partha Pratim Sahoo

Partha Pratim Sahoo (Querist)
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03 November 2013 Thank you sir. My doubt is cleared.

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