Sec 10(2A)

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77 Points Joined October 2019
Profit derived by resident from share in Foreign partnership firm is also exempt u/s 10(2A)?
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On 20 September 2024 at 15:36 Report
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9570 Points Joined December 2011

Section 10(2A) of the Income Tax Act, 1961, exempts income earned by a resident from a share in a foreign partnership firm, subject to certain conditions. However, this exemption is available only if the following conditions are met: 1. The foreign partnership firm is not liable to tax in India. 2. The share of profit is not derived from an Indian business or profession. 3. The foreign partnership firm is not a "specified entity" as defined in Section 10(2A). If these conditions are satisfied, the profit derived by a resident from a share in a foreign partnership firm is exempt under Section 10(2A). Please consult a tax expert or chartered accountant to ensure you meet the necessary conditions and comply with applicable tax regulations. Additionally, consider the following: 1. Verify the residency status of the partnership firm and its tax liability in India. 2. Ensure the share of profit is not derived from an Indian business or profession. 3. Check if the foreign partnership firm is a "specified entity" as defined in Section 10(2A). Remember, tax laws and regulations are subject to change, so consult a tax expert or the Income Tax Department for up-to-date advice on your specific situation.

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On 20 September 2024 at 19:01


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