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Standard deduction of 40000
Salary received from firm is treated as PGBP in the hands of partner.
As in my case partner is getting 30000 pm salary
Salary received from firm is treated as Business Income (under profits and gains from business ) by the Partner.
(ITR5 - schedule BP)
If the salary (remuneration) received from partnership firm then it's not under the head of Salaries...
in case the partner earn salary from any other way (for working employee) then he can avail such deduction...
It can't be paid to non-working partners.
He may be salaried partner.
If salaried then he can claim standard deduction.
The employer is bound to furnish form 16.
1. As per sec 28(v), if a partner is in receipt of salary, interest, bonus, commission or remuneration, by whatever name called will be taxable in the hands of such partner as business income.
2. Hence, the salary received from his own firm will be taxable as business income and the standard deduction will not be available for such salary income.
3. The standard deduction will be applicable only for a salaried employee (Employer and Employee relationship)
4. In your case, the standard deduction will not be applicable for salary received from a firm in which you are a partner.
5. The share of partnership does not matter in this scenario.
Please correct me if the above solution has an alternative view.
Mr.Suresh u are absoloutely correct.
| Originally posted by : sabyasachi mukherjee | ||
 |
So Ankit now its clear if you are having 1/3 profit share then u cannot claim standard deduction.Mr.Suresh u are absoloutely correct. |  |
Thanks sabyasachi ji
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