If person is partner in firm but in current year person do not have share of profit from firms . Person only has salary and Interest on capital . then which ITR need to be file .(AY2025-2026)
Menu
ITR 3 for Partner
Replies (2)
-
Partner’s salary and interest on capital are both taxable under the head "Profits and Gains from Business or Profession," even if no profit share is received.
-
ITR-3 is applicable to individuals and HUFs who are partners in a firm and have income by way of salary, commission, bonus, or interest from the firm, regardless of whether profit is shared.
ITR-3 is required for AY 2025–26. A partner’s salary and interest from a partnership firm are taxable as business income under section 28(v), even if the partner receives no share of profit for the year. The absence of a profit share does not change the applicable ITR form. ITR-2 is not suitable where these amounts are taxable as business income.
For the firm-related workflow, report the salary and interest in the business-income schedule and reconcile them with the firm’s tax reporting. Manual return preparation can make these checks repetitive; automation helps reduce that work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a smoother return-preparation workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1
Recent Topics :
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
- GST RATE ON FILM PRODUCTION
- Section 54
- Why are foreign investors suddenly buying Indian s
- TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI &
- Query to Tax Garden tax consultant
- Subject: Urgent Assistance Required – TRACES
Related Topics :
CAclubindia
