Swapnil (Student) (183 Points)
04 January 2019Plz Guide...
My Sister is a partner in my fathers business for 20% from 2015. Recently she got job in Axis Bank as Asst. Manager. While applying for Business Loan Axis Bank manager told that She cant be a partner in a firm as she is an Employee in bank. He is not sure about it so he advised to take tax consultants opinion.
Please guide me whether my sister has to withdraw her partnership from business or she can continue as a partner along with her job in Axis Bank.
CS M Pota
(Company Secreatary)
(3180 Points)
Replied 04 January 2019
There is no such provision in the Income Tax Act.Axis bank may have problem as per it's internal rules that Axis Bank employee should not be engaged in any business or profession along with the job of Axis Bank.
If the restriction is Axis Bank internal the same either should be in the appointment letter of your sister or get checked with HR department of Axis Bank.
CAclubindia
