Partner Ship Firm.

This query is : Resolved

Piyush Jain (Querist)
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15 July 2009 Dear Friends,

My client is running parnetship firm with two partners as indiviuals , the firm is enjoying 80IB deduction benefit.

Now the client wants to reconstitue the firm by changing one partner from individual to one ltd. company already existing.

My query is:
1. If Ltd. company become the partner, still 80IB benefit will continue.
2. Is MAT provisons under sec.115JB will be applicable on the profit share of the Public Limited company.
3. What other effects can arise?

Regards,

Piyush Jain

vinod kumar lalwani

vinod kumar lalwani (Expert)
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16 July 2009 hello piyush!

your answer querywise as follows:-

1. Yes firm will continue be eligible for climing benefit under section 80IB.

2. no, MAT provision will not applicable in this case as share income of partner is exempt in hands of partner u/s 10(2A).

just file revised deed of partnership with department.