Benifit under which form of orgnisation llp or pvt ltd

This query is : Resolved

Ashraf (Querist)
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21 November 2013 Sir,

Please provide the comparative details currently benefit ( deduction)available under Income Tax Act, to LLP and Pvt Ltd.

which form of orgnisation is least tax burden under Income Tax Act

Whether LLP or Pvt Ltd

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 in terms of tax burden, while on income side, both LLP and Pvt Ltd face same tax burden. However, the key is on the distribution side. As on today, distribution of profits by a LLP is not taxable in the hand of the partners nor does it attract any distribution tax.

however, a private limited company is exposed to dividend distribution tax.

therefore, a LLP is still more tax efficient.

rest all remains same.

Ashraf

Ashraf (Querist)
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22 November 2013 Thanks you very much

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 you are welcome.