13 July 2017
We are two friends, we have a firm “ABC” and we both have equal share of 50% each in the firm. We opend a medical shop on the name of firm “ABC”. At the end of financial year our firm’s profit is INR 1,00,000. As per the taxation of firms we paid 3 lakh(supoose 30% is the only tax we have to pay). So 100000–300000= 7 lakh is the profit. we both distributed or shared the profit among us. I took 350000 and my friend took 350000. Now is this 350000 is taxable and do we need to pay tax on this 350000
Since we(firm) have already paid tax on that particular income, do we need to pay again.
CAclubindia
