doesn't this attract double taxation ??? - No. After the payment of Tax then the profit share is fully exempted (already taxed) In the hands of partners...
partners salary is taxed in the firm @ 8% and again in the hands of partners under respective slab !!
- No... It's exempted income (Already taxed). Note : It's not called salary. The profit share transfer to capital account and partner can draw the amount as drawings...