Income tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2013 Hi....i am CA.CPT student. My Query is-

Why the assessee other than individual like, partnership firm,company,AOP, BOI and others shall have to pay taxes and file the returns in it's name .I mean there also separate returns will be filed and pays the taxes in the name of individuals who are partner in firm or director in company or trustee in trust.

so why assessee other than individual like, partnership firm,company,AOP, BOI and others are treated as assessee or person in the eyes of Income Tax Act,1961

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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28 October 2013 it is so because such entities have their own separate legal existence.

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2013 Yes, but partnership firm and AOP have no separate legal existence .....then why they also has to pay tax and files return in it's name ......?

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Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2013 Yes, @Mr.Nikhil Kaushik but partnership firm and AOP have no separate legal existence .....then why they also has to pay tax and files return in it's name ......?

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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29 October 2013 who says partnership firm doesnt have a legal existence? anyways, for partnership firms and AOP, taxation is done in their name for convenience.

To ensure no double taxation happens, the partner's share in partnership is exempt in his individual capacity. same applies to the AOP too.

CA Madhukiran Reddy

CA Madhukiran Reddy (Expert)
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29 October 2013 there are different type of persons defined in IT Act. Hence each assessee will be different person and they have their own pan number...
That is the reason they need to file their returns with their pan number...

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2013 Yes, but Partnership Firm and AOP has no legal status but it is separate entity only for the purpose of IT Act,1961.So it has no their own separate legal existence, then why they has to pay taxes and file the return in it's name ????