Can anyone please explain this section 10(2)?
Share income of a person being a partner of a firm (includes Limited Liability Partnerships) which is separately
assessed as such is exempt from tax. For the purposes of this clause, the share of a partner in the total income
of a firm separately assessed as such shall be an amount which bears to the total income of the firm the same
proportion as the amount of his share in the profits of the firm in accordance with the partnership deed bears to
such profits.
I can understand that partner's share in income in exempted but I can't understand the latter part of the section. Please someone explain this. Thank you..!
CAclubindia
