06 July 2009
A partnership firm having son and mother as partner has shop purchased in 1987 in name of firm.It is given for rent for 6 lac+ Deposit of 3 lacs earning interest of 9% in bank.The firm has no business income.Suggest tax planning for firm or it will have to pay 30.03% firm tax on income from house property and interest income from other sources. Any deductions that can be claimed over and above standard deduction of 30% + municipal taxes. Suggest.What if shop is in partnership name in society records and thereafter registered in 2008 as propritor of the firm with registrar by one of the partners.Can then the rental agreement be entered in individual capacity as proprietor.
In view of the above,as u rightly said,deductions on account of 30% and municipal taxes alone can be claimed. Interest income is also assessable in the hands of the firm under the head 'Income from other sources'.
Apart from the above, no other wayout/planning comes to my mind right now.
CAclubindia
