Proprietorship or partnership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2016 Dear All
For tax saving purpose weather propreitorship firm is batter or partnership if so? Please do expain why & how,

Thanks in Advance
Rohit Bansal

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)
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23 September 2016 Prop. is better because the tax benefit would be available. Prop. would be taxed as individual as slab benefit would be there/available. Further you can claim deductions like 80C in case of Prop. whereas the firm would b taxed at flat 30% for every single penny of income. There is no slab taxation available in case of a firm.