Difference Between Partnership Firm and LLP: A Detailed Comparison for Business Owners
A partnership firm is formed when two or more individuals agree to carry on a business and share profits as per mutually agreed terms. The relationship between partners is defined through a Partnership Deed.
Section 10(2A) – Exemption on Share of Profit from Partnership Firm or LLP
Section 10(2A) provides that the share of profit received by a partner from a partnership firm or LLP is exempt from income tax in the hands of the partner.