Section 10(2A) → Section 12
Exemption - Share of profit from Partnership Firm
Quick Answer
Section 10(2A) of the Income Tax Act, 1961 (Exemption - Share of profit from Partnership Firm) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(2A)
Provision Summary
A partner's share in the total income of a firm is exempt from tax in the hands of the partner.
Sec 12
Provision Summary
Retained. Since the firm pays tax on its profits, the partner is not taxed again on the share.
Key Changes & Highlights
- Interest and salary from firm remain taxable under PGBP, only profit share is exempt.
Related Sections
Frequently Asked Questions
What does Section 10(2A) of the Income Tax Act 1961 deal with?
Section 10(2A) (Exemption - Share of profit from Partnership Firm) A partner's share in the total income of a firm is exempt from tax in the hands of the partner.
What is the new section number for Section 10(2A) under the Direct Tax Code 2025?
Section 10(2A) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(2A) under the new tax code?
Section 10(2A) is marked as "Retained" with status "Active". Impact: High - Crucial for partnership and LLP structures.
What are the key changes to Section 10(2A) under DTC 2025?
Interest and salary from firm remain taxable under PGBP, only profit share is exempt.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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