Ms. Ritu, a working partner of a firm, is paid a fixed monthly salary of Rs. 39,800 under the…

Section 15(4) of the Income-tax Act, 2025 provides that salary or other remuneration received by a partner from the firm is not regarded as salary. Section 26(2)(g) instead charges such remuneration as the partner's business income to the extent it is allowed as a deduction in computing the firm's income, so it is taxable "under the head Profits and gains of business or profession, to the extent allowed as a deduction to the firm under section 35(e)". Section 35 corresponds to section 40 of the repealed Income-tax Act, 1961.