18 August 2013
Dear Experts, What is the treatment of income-tax taxablity in excess maximum limit of 10 partners in banking business. And also in excess of 20 partners in other business.
18 August 2013
First of all the RBI will not grant any licence to a partnership firm if the minimum number of partners exceeds the minimum number required for granting Banking licence. Secondly the partners limit of 20 cannot be exceeded as it will be treated as illegal partnership and the Registrar of firm shall not grant the registration as a partnership firm.
So better you register the same as LLP or Pvt. or Ltd. company in the specific circumstances by adopting rule 9 conversion.
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