Pls. suggest me whether Private trust can become partner in partnership firm & if yes then share of income earned from business runned by this partnership firm is taxable in hand of trust or not?
TYPES OF PARTNERSHIP A Partnership can be formed between: (i) one or more individuals or (ii) between an individual and a person representing a H.U.F. or (iii) between an individual and other partner representing his firm, or between Limited Company or a Corporation and an Individual or Partnership firm, or (iv) between two Partnership firms, or (v) between a Limited Company or a Corporation and an individual or Partnership firm, or (vi) between a Partnership firm and H.U.F., or (vii) between members of HUF in their individual and independent capacity, and (viii) between a HUF and a member of that HUF independently.
01 May 2012
Yes you can make the private trust as a partner and the profit received from the firm is not table in the hands of the trust as it is already tax paid is exempted u/s 10
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