Under the Income-tax Act, 2025, a partner's share of profit from a firm assessed as such (excluding…

The share of profit is fully exempt in the partner's hands. Section 11 read with Schedule III (entry 2) of the Income-tax Act, 2025, which carries forward the former section 10(2A), excludes a partner's share in the total income of a separately assessed firm, because the firm itself has already paid tax on that income. Interest on capital and remuneration received from the firm are different: they are taxed as business income of the partner. There is no salary treatment and no ₹ 2.5 lakh limit for this exemption.