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PARTNERSHIP FIRM GIVING RENUMERATION TO PARTNER

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AMIYA ABHISHEK

BRANCH MANAGER

21 Points Posted on 10 April 2021

Dear Sir

I have a question to ask from you learned people from field of Income tax.

I have received a home loan proposal and both the borrowers are partner in a partnership firm. The maon borrower received Rs15 lakh as renumeration from the firm which is reflected in partnership firm balance sheet.

However the form 26 AS of income tax does not show the amount 15 lakh. The borrower says since this Rs 15 lakh was redeployed in the firms business it is not being shown in Form 26 AS.

i believe if its his income this must be reflected in his AS26 .

Please guide and help.

Regards

Replies (2)

Quick Summary

This discussion addresses a query regarding remuneration paid to a partner by a partnership firm. The partner's Form 26AS did not reflect a £15 lakh remuneration payment, leading to confusion. Experts clarified that remuneration paid to partners from a firm is generally not subject to TDS and therefore won't appear in Form 26AS. To verify the income, one should check the firm's Profit & Loss account and the partner's capital account.

Ankit Neema

1359 Points Posted on 10 April 2021

On REMUNERATION From partnership firm TDS liability does not arises.

Nidhi

Chief Accountant

1673 Points Posted on 11 April 2021

Remuneration from Firm should not reflect in form 26AS, as TDS provision are not applicable for same..
So, for remuneration amount you are required to check the firm's P &L account and Partners Capital Account in which remuneration have to be credited