Debashis Mandal (Business & Tax Consultancy) (341 Points)
15 August 2009Respected Friends
i have a question to ask - If a minor is a partnrt of a firm by individual capacity, whether he/she can earn partners remuneration from the firm, pls explain this question from the poiny of view of two laws - Income tax Act 1961 & Indian Partnership Act 1932, pls. solve this question as early as possiable,
Thanks - Debashis e mail ID - kstda @ rediffmail.com
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 16 August 2009
Respected Friends
i have a question to ask - If a minor is a partnrt of a firm by individual capacity, whether he/she can earn partners remuneration from the firm, pls explain this question from the poiny of view of two laws - Income tax Act 1961 & Indian Partnership Act 1932, pls. solve this question as early as possiable,
Thanks - Debashis e mail ID - kstda @ rediffmail.com
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 19 August 2009
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 23 August 2009
Respected Friends i have a question to ask - If a minor is a partnrt of a firm by individual capacity, whether he/she can earn partners remuneration from the firm, pls explain this question from the poiny of view of two laws - Income tax Act 1961 & Indian Partnership Act 1932, pls. solve this question as early as possiable, Thanks - Debashis e mail ID - kstda @ rediffmail.com
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 24 August 2009
For the purposes of partnership act, a minor is a partner in profits but not in losses, hence, he can get the remuneration from the firm....but it shall be taxable inthe hands of his/her parents as clubbing provisions shall apply..........
also, "if the amount is paid to a non-working partner or passive partner or sleeping partner or dormant partner, then it will not be deductible. But it can be paid to even a female/minor partner provided the partner is working. The onus of proof is on the assessee, i.e., the partnership firm. It is not required that the partner should be exclusively/wholetime working partner. He/she can be working part time and he/she can be working partner with more than one partnership firm."
MR. R....halpfull hand is back
(.)
(297 Points)
Replied 24 August 2009
minor is partner 4 his indevidual capacity and he is working partner and he do work for his/hir indevidul capacity then he/she get remuneration
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 28 August 2009
after 4 times i got the answer though not the answer i want, because my question is whether such minor partners remuneration is allowable under income tax act or not,
ashish & r to all of u thank u very much for responding
Debashis
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 29 August 2009
Any payment to a minor as a partner in the form of remuneration is very well deductible as if it is paid to major provided he is a working partner and that too within the limits and such amount shall be tax free u/s 10(2A)............
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