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

Clarification Sought on Taxation of Indian Partner's Earnings from US Firm under Section 10(2) of Indian Tax Law An individual inquires about the taxation of profits and remuneration received by an Indian partner from a US partnership firm. The query specifically seeks clarification on how these earnings would be taxed in India under two scenarios: if the US partnership firm is liable for tax in the US and if it is not. The individual references Section 10(2) of Indian tax law, which exempts profit shares received from Indian partnership firms, and seeks guidance on its applicability to foreign partnerships.