Home › CA Final › taxation › Assessment of Various Entities › Partner's share of profit under Section 10(2A):
Partner's share of profit under Section 10(2A):
ATaxable as Salary
BTaxable as PGBP
CTaxable as Other Sources
DExempt in partner's hands
Answer & Solution
Correct answer: D. Exempt in partner's hands
1. Section 10(2A) exempts partner's share of profit (taxed at firm level).
2. Avoids double taxation of same income at firm and partner levels.
3. However, interest and remuneration from firm are taxable in partner's hands under PGBP.
_Source: ICAI BoS CA Final Paper 7, Ch 9 "Assessment of Various Entities"_
Related questions
'Specified domestic transaction' threshold under Section 92BA:Tax planning vs evasion — which is impermissible?LLP is taxed like:Co-operative society normal rates start at:MAT for IFSC units (income solely in convertible FX):Tax on REIT/InvIT interest from SPV:Section 115BAC default regime applies to:AOP/BOI taxed at MMR when: