its urgent,which head to be taxable

Tax queries 3267 views 24 replies

1)partner's salary to be taxable under which head?
2)whether prof. tax and tds will be deducted or not, if yes then how much amount and what %age will be deducted if salary is 50,000/month?

Replies (24)

Partners salary shall be taxable under the head "Business & profession."

regards,

ratan

Partner's salary is taxable and the Tax is to be deducted, now what amount of tds is to be deducted on Rs. 50000/- p.m can't be ascertained as there is no breakup of the salary is given and also the savings of the partners is not mentioned

Hello, partners salary and interest is income from business and profession.

 

No PT or  TDS deduction on salary to partner,

cos there is no employer-employee relation between firm and partners.

Yes you are right, i am wrong in this case. Sorry for this

Sandeep

If your question is from point of view of individual who is a partner then for him salary form firm will be classified under salary but no tax will be deducted as it is exempted

no tds or professional tax is to be deducted for the same.

Yes I agree with ANKUR......

yes your answer is right yaar

 

Salary received by a partner from his partnership firm carrying on business such income is taxable under the head Profits and Gains from Business and Professions, as such salary is claimed in P/L and accordingly taxed. 

 

Agree with G.K....sorry Ordinarily resident Evil
Partners salary and interest is income from business and profession.

No PT or  TDS deduction on salary to partner,

No employer-employee relation between firm and partners.


 

prof tax and tds will not be deducted as the same is business income in the hands of the partner

Partners Salary is Taxable under the head Business or Profession: and Shown as Special Business Income 

Agree with Ordinarily resident Evil
Partners salary and interest is income from business and profession.

No PT or  TDS deduction on salary to partner,

No employer-employee relation between firm and partners.

Salary and Interest on capital from partnership firm will be taxed under the head Business or Profession.

NO TDS and PT will be deducted.

Hi,

 

Partner's salary is allowed deduction to the firm within prescribed limits u/s 40(b) of the IT Act. The same is taxable as income u/h PGBP.

Further no TDS is to be deducted as the partner is not related to the firm in the capacity of an employee.


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