I am a layman trying to figure out how LLPs are taxed. Please help me.
If my LLP makes 12 lakhs profit.
maximum remuneration which can be given to the partners is Rs. 810000/ (for the first 300,000/- the 90% of the 2,70,000) plus 60% of the balance amount (60% of 9,00,000/-)
What will happen to the rest of the money. Can it be distributed as share of profit . Ie 390000.
How is each instance taxed ?
Why cant you give the entire amount as share of profit?
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LLPs and tax
Replies (1)
Yes 390000 rupees should be shared as profit to partners as per share agreed.
The share of profit, received by a partner, in the total income of the firm is exempt from income tax in the hands of the partners. The share of profit, received by a partner, in the total income of Limited Liability Partnership is exempt from income tax in the hands of the partner.
The share of profit, received by a partner, in the total income of the firm is exempt from income tax in the hands of the partners. The share of profit, received by a partner, in the total income of Limited Liability Partnership is exempt from income tax in the hands of the partner.
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