Partner's salary (urgent)

 For salary, the only thing is the partnership deed should have the clause. But as per Income Tax Act, when there is Employer- Employee relationship, the remuneration paid to employee will be called as salary. But in Partnership, there will exist Prinicipal- Agent relationship where Firm is Principal and Partner is agent. So, any amount getting from firm in status of Partner will be treated as income from Partnership firm and thereby income from business for each such partner. Hope the clarity u wanted has been given. Thanq

Firstly, there is no Employer-Employee relationship. The Assessee being a Partner is receiving Salary from the Partnership Firm, accordingly, Salary received by the Partner is taxable under the Head Income from Business. Hence the salary cannot bifurcated into various Allowances.

Regards,

Devendra Kulkarni

Originally posted by : CA DIGANT CHADHA
	SALARY TO A PARTNER IS CHARGED UNDER HEAD INCOME AND GAIN FROM BUSINESS AND PROFESSION, SO THERE IS NO POINT OF EXEMPTIONS UNDER THE HEAD SALARY.

agree with this comment

Agree with Devendra

  First Of all , salary income from A partnership firm is taxable in the hand of the partner under the head PGBP and the same is allowed  to the firm,  hence the bifurcation can  be done  from the  firms Side. 

Fully agree with above comments........