Dear Friends,
Please describe if partners salary breakup (Like Basic, HRA, Transport allowance etc) possible or not under income tax act.
sanjeev sharma (Qualified C.A) (32 Points)
10 November 2013Dear Friends,
Please describe if partners salary breakup (Like Basic, HRA, Transport allowance etc) possible or not under income tax act.
Ramesha.M
(Accountant)
(800 Points)
Replied 10 November 2013
CA CS Jainam Shah
(Practicing Chartered Accountant)
(2492 Points)
Replied 10 November 2013
Remuneration received from partnership firm is going to taxed under the head Business or Profession of Partner. Hence, there is no question arise for bifurcation of salary in terms of HRA or Allowances.
Hence, it is not possible under the Income Tax Act, 1961.
E-mail: ca.jainam @ gmail.com
Mihir
(Wealth Manager)
(5293 Points)
Replied 11 November 2013
Partner of a firm is not an employee. Even though, the term 'salary' is used, but this income is assessed under income from business/profession.
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 11 November 2013
completely agree with all.
As firm is already taxed ... then there is no mean to bifurcate the salary of partner.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 11 November 2013
agree
partner is not an employee of firm
partner's salary is taxable under pgbp hence breakup not possible
sanjeev sharma
(Qualified C.A)
(32 Points)
Replied 12 November 2013
Thanks friends for your valuable replies
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