In a partnership firm Income tax calculated on profit and deposited into government.
Suppose, Two partners A, B started a partnership firm. Agreed on 50:50 profit ratio. after ending year on profit of 5,00,000, income tax 20,000 deposited into government. then profit 50-50 means 2,50,000-250,000 added in a and b capital respectively.
when partner A or B filled his indivisual ITR he shows his income from business 2,50,000 my question is that
Q.1. Is A and B again liable to pay income tax on 2,50,000 that is earned from partnership firm on which incometax payment already made by firm.
Q.2. Is Tds deducted of partnership firm shown in Indivisual ITR of A and B 50:50? How treate with Tds that is deducted in firm.
too much confusion please provide help..
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