Partner Remuneration is Business Income: Expenses (Including Depreciation) Allowed
Partner Remuneration is Business Income: Expenses (Including Depreciation) Allowed Delhi ITAT Confirms Section 28(v) Classification and Upholds Consistency Rule. The Delhi Income Tax Appellate Tribunal (ITAT) has provided critical clarity for partners of professional firms, confirming that remuneration received is classified as Business Income , not 'Salary'. This classification under Section 28(v) of the Income-tax Act, 1961 , allows the partner to claim legitimate business expenditures against that income. The Dispute: CA Partner's Expense Claim The case involved an assessee, a chartered accountant partner, who received remuneration/salary from his partnership firm (Assessment Year 2018-19). The dispute arose over the treatment of expenses: Assessee's Action: Claimed business-related expenses, including depreciation on a motor car, again...

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