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Sir, a medicine shop is open by three partner?can income be shown on one partner file.?

Ashim kr Ray (social service) (1685 Points)

22 April 2017

Sir, Suppose three Partner ABC open a firm ,the firm Trade license in the name of "A". Now B & C is sleeping partner,as per partnership deed they are partner of firm,but as not active partner they agree to give all profit of firm to partner "A". So i want to know is this possible.In partnership deed share of profit is divided equally.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 22 April 2017

Shares is to be divided equally, but working partner can earn salary/remuneration under certain conditions, if such clause exists in the Deed.

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(Guest)

go for llp

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Ashim kr Ray (social service) (1685 Points)
Replied 22 April 2017

Sir,

But partner B& C decided not to take there share and to give all share of profit to Partner "A",though in partnership deed it mention profit will be equally distributed.

So can in the IT file of partner "A" all the share of firm can be shown. Partner "A" fall under the category of 10(26) of IT act.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 22 April 2017

As per existing deed, it cannot be done in the specific manner. Alternative is let them give (that particular amount) as gift to A; & in future dissolve the partnership firm and let them start a new properietorship in the name of A

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Ashim kr Ray (social service) (1685 Points)
Replied 22 April 2017

Ok thank you

Hemant Yadav (Student IPCC) (39 Points)
Replied 23 April 2017

As per section 10(2A) share of profit of firm in hands of parters are exempt; so you can change profit sharing ration in your partnership deed and if partnership firm is registered than you should register your amended partnership deed with the registrar of firms

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