Taxation on partnership
This query is : Resolved
24 October 2012
hello
i wnt to know that what is the provision for tax on partnersahip & if firm pays the tax i.e.30% than partners are individually liable for taxation or not & IF YES than in which brakate????????
i wnt to know that what is the provision for tax on partnersahip & if firm pays the tax i.e.30% than partners are individually liable for taxation or not & IF YES than in which brakate????????
24 October 2012
Share of profit from the partnership firm is exempted income in the hands of individual partners. So due to the other income(i.e other than profit/loss from the partnership firm) his total income exceeds maximum basic tax exemption limit according to the individual assessees then only required to pay income tax according to individuals tax rate slabs.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Message likes :
1 times
24 October 2012
which profit is taxable profit of p & l A/c or after apportionmate?????
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
24 October 2012
which profit is credit to the partners capital account as share of profit from the partnership business is the exempted income. And remuneration/salary and interest on capital are the taxable incomes in the hands of partners.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
24 October 2012
As per provision of Section 10(2A) of the Income Tax Act Share of profit to a person who is a partner of a Partnership Firm which is seperately assessed to Tax is exempt in his hands. Thus, if the firm has paid tax on its profits, individual share of the partner will not be taxable in his hands.
However, as per provisions of Section 28(v) any interst,bonus,salary,comission or remuneration, by whatever name called, due to, or recieved by, a partner of a firm from such firm( to the extent allowed as a deduction u/s 40(b) to the said firm) shall be taxable in the hands of the Partner under the head ' Profits & Gains From Business & Profession'
As per provision of Section 10(2A) of the Income Tax Act Share of profit to a person who is a partner of a Partnership Firm which is seperately assessed to Tax is exempt in his hands. Thus, if the firm has paid tax on its profits, individual share of the partner will not be taxable in his hands.
However, as per provisions of Section 28(v) any interst,bonus,salary,comission or remuneration, by whatever name called, due to, or recieved by, a partner of a firm from such firm( to the extent allowed as a deduction u/s 40(b) to the said firm) shall be taxable in the hands of the Partner under the head ' Profits & Gains From Business & Profession'
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Application of 115BAC
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
