Interest on income tax refund of partnership firm

Dear Sir,

it is income of partnership firm, not that of the partner, thus, it would be taxable in the hands of the firm @ 30.90% under income from other sources... 

no such other treatment is possible...

 

 

Book profit for the purpose of calculation of remuneration to partners does not include income chargeable to tax under Income from house property, Capital gains and Income from other sources. Accordingly in the above case interest on Income tax refund is not taken in to account while computing book profit as the same is taxable under Income from other source. And it is offered to tax at the rate of 30.9% under other sources