Share of profit and remuneration received by Indian partner from US Partnership firm

[MANOHAR KALBURGI]

Dear Sir,

In India we have a section 10(2) for exempting the share of profit received by partner from partnership firm in the hands of partner form Indian partnership firm.

My doubt goes like this,

Suppose if Indian partner who is a partner in US partnership firm and receives partner's shares and remuneration, how it will be taxed here in the following cases.

1. If foreign partnership firm is liable for tax in US and

2. If foreign partnership firm is not liable for tax in US

Thank you in advance

AI Summary

Partnership profit exemption: tax treatment in India for an Indian partner receiving profit and remuneration from a foreign partnership. Inquiry whether the domestic partnership profit exemption extends to an Indian resident partner's share of profit and remuneration from a foreign partnership, posed in two scenarios: (1) the foreign partnership is taxable in its jurisdiction, and (2) the foreign partnership is not taxable there; the question distinguishes share of profit from remuneration for Indian tax treatment.