21 November 2009
for income tax purpose, firm has the meanings as assigned to it in the Indian Partnership Act, 1932 (9 of 1932) however now it includes limited liabilty partnership. A firm to be assessed as a firm is required to satisfy conditions specified u/s-184 of the Income Tax Act,1961,which are as follows:- 1 It should be supported by Deed 2.share of individual partner shoud be given in deed certified copy of deed should be filed to ITO with ITR
22 November 2009
Hey friends, if u go as per Indian partnership Act, 1932,partners are collectively called firm n individually partners. there is no need of any written partnership deed. but if u do not register the firm then it will be assessed as Aop/BOI by income tax authorities.
with a submission that as soon as any partner goes-out/ ceased to be act as a partner, the partnership disolved and each partner becomes liable to the debts/liabilities of the firm individualy and/or collectively.
CAclubindia
