Taxability
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 April 2010
Under What Head Does the Income of a sleeping partner from partnership firm chargeable to Tax?( Salary, Profit,Interest if it exceeds 40 lakhs)???
Can you pls reply urgently
Can you pls reply urgently
28 April 2010
If the partner is a sleeping partner then he will not get any remuneration.
Section 28(v) states as under:
(v) any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm :
Provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be deducted under clause (b) of section 40, the income under this clause shall be adjusted to the extent of the amount not so allowed to be deducted
So interest received from a partnership firm is taxable under the head business income.
Profit from partnership firm taxable 10(2A)
Section 28(v) states as under:
(v) any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm :
Provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be deducted under clause (b) of section 40, the income under this clause shall be adjusted to the extent of the amount not so allowed to be deducted
So interest received from a partnership firm is taxable under the head business income.
Profit from partnership firm taxable 10(2A)
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