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Doubt chargeable under which head

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manju nath

3 Points Posted on 26 July 2021

If I am getting Remuneration or salary from partnership firm whether it is chargeable under which head of income.

Replies (4)

Quick Summary

If you're receiving remuneration or salary from a partnership firm, it's generally taxable under the 'Profits & Gains from Business or Profession' head. While interest received by a partner is also treated as business income, your share of profits from the firm is typically exempt. Even if you only receive exempt profits, you'll still need to file using ITR-3.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 26 July 2021

Remuneration and interest received by partner from firm is taxable as Business income. However, share of profits from firm is not taxable in the hands of partner. Hence, if partner is receiving only exempt income i.e. share of profits from firm, then also he is required to file ITR-3 only.