As a partner of CA firm, remuneration and profit share will be calculated only by 30-09-2010 (due date of filing of return for CA firm), in that case whether 31st July will stand as due date for filing income tax return even if the turnover of the firm is less than Tax Audit limit?

Regards

Dear Sachin,

partners ITR wil lbe filed on the due date of the firm only in the month of july when books are not audited.. if there is tax audit than in sept....

I agree with Mr. Shivang. However, Just want to elaborate on only the working partners of the firm having tax audit has the same due date as the firm not all partners. Also, if the turnover of the firm is less than the limit prescribed for tax audit than its return due date is same as any other assessee i.e 31st july.

Agreed with Mr. Shivang & Mr. Rishabh. Thanks a lot to both of you.

The due date for firm and Salary is 31st july in case of no audit requirement.

Since the discussion point was that if during the FY, partner resigns and joins industry, what will be the due date for him for filing IT Return as he withrew from the firm till the time he was a partner of the firm and also received salary from the company as employee.

Since as on 31-03-2010, he is working as an employee and he cannot work out the total remuneration from the firm as what he got from it was just withdrawl during his stay in the firm and the remuneration from Partnership firm is subject to Income Tax Provisions and can only be known once the firm finalises its return.

Hope querry is now quite elaborated for your valued inputs.

Regards

Yes Mr. Sachin Jain.

Rightly said, Firm remuneration will be finalized on the finalization of account by the firm. And the due date for the firm is 31st July (Since it is under the tax audit limit), so they have to finalize the amount of remuneration by 31st july. which is also the due date of return for salaried class. So by 31st july you will have your salary Income as well as profession income. 

Thanks Sachin for giving the necessary details. There is no clear cut solution for this problem in Income tax act. However, what that person is do is he should file his return on 31st july with salary income & his best estimate of partnership remunaration than whenever the accounts of firm are finalised & he comes to know his actual renumaration he can file the revised return and pay additional tax or claim refund depending upon situation

MR. SAchin.

Its very simple..... Nothing to confuse...   he will file return in a capacity of Partner and the same date of firm....

In the A>Y>, at any time he was a partner of the firm. right now what he is doing is not tht relavant....

since he wil lbe getting profit also, he has to file his return on the date firm files,,,,,

sept if tax audit or else in july only.....

Rishab Mathur's view seems to be in order. Regarding views expressed by Shivang, I guess there is no provision in support for "at any time he was a partner of the firm" as mentioned.

Thanks Rishab for really a practical solution!

regards

Mr. Sachin:

Are you confused yet.

Tell me if firm going to be tax audited or not. It seems you are very confused.... cant understand explanantion given by 3 experts above....

Mr Shivang

Being a professonal (as pretended in your id) please understand the difference between CONFUSION and clarification.

Your opinion on this querry i.e. In the A>Y>, at any time he was a partner of the firm. right now what he is doing is not tht relavant.... was not supported by any provision of either Income Tax Act or Partnership Act.  

Mr Rishab Mathur has a very practical solution already to this querry.

Anyways thanks for your time and effort on this.

Regards

CA SACHIN JAIN

MR. SAchin

I agree to Mr. Rishabh Mathur. With due respect i would like to clarify your confusion.

And i think so you are a CA if your Name is ID is right. I have filed many returns till now including such case. When a partner is liable for profit what will you do.? There is non sense to file revised return every now and than. Thats a practical solution. If you stil have doubt better contact some ITo for the provisions.

And sorry but i do know the difference between confusion and clarification. Clarification is needed when someone is very confused as in this case you are asking questions. So dont be confuse. Read all the provisions, contact AO also if  you need real good clarification and than can get back to me, if my solution is wrong.  I dont give answers on my logic.

Shivang.

Shivang

For your information, PROFIT SHARE FROM FIRM IN THE HANDS OF PARTNER IS EXEMPT.

Therefore, the solution suggested by Mr Rishab Mathur still holds good.

Regards

Dear Sachin,

If you have ever filed any return in Articleship than you will be knowing that it is compulsory shown in ITR and than Exemption is claimed....

Still, this does not create a cause to revise the return buddy as whatever will be the profit share it will be exempt and the return will be revised once the Firm files its IT return.

Regards