Firm related

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2011 Respected,

we are 3 partner and working as firm name is xyz we nether have PAN card on our firm name nor our firm is registered under pship act.

now the qus. is

1. we earn Rs. 6,00,000/- it is accessed in the name of firm @ 30% or we take our share Rs. 2,00,000/- each and file our return by showing it as our business income with our other income by taking normal slab rate?

2. is it necessary to take PAN card on the name of firm if we 3 partners working together as per income tax act ?

3. and if our firm is liable to Audit u/s 144AB then we require PAN card and Access our firm @ 30% or we can access our share in our ROI at normal slab rate by showing it as business income.

CA Rajeev Bansal

CA Rajeev Bansal (Expert)
Follow

10 September 2011 1. The net income you have earned in Partnership firm have to be assessed in the name of your firm @30%. and you can deduct partner salary and interest on Partner's capital from the firm income you have earned.

2. It is necssary to take PAN in the name of partnership fiem

3. If your firm is doing business then audit is mandatory if your turnover id above Rs. 60.00 Lakhs otherwisw take the benefit of Sec 44AD of income tax act

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

11 September 2011 First ofr all you must have the PAN NUm,ber. For partnership firm if the firm earns even one rupee it has to procure the PAN Number.

Your firm does not have the PAN Number then how you are filing the Income Tax Return. It is clear cut case of non filing of return and you may be served with notice u/s 142(2) or 148 at any time for filing the return and without PAN Number the firm may be treated as AOP and taxed @30.9% with interest and penalty of concealment.

Other the expert have explained.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2011 thanks sir