Firm definition
This query is : Resolved
sivadas chettoor
(Expert)
09 October 2011
Your attention is invited to Section 2(32) of the IT Act 1961 which is like this............"2(23) "firm", "partner" and "partnership" have the meanings respectively assigned to them in the Indian
Partnership Act, 1932 (9 of 1932) but the expression "partner" shall also include any person who, being a
minor, has been admitted to the benefits of partnership;
Thus to find out the meaning of the expression "firm" you will have to see the Partnership Act 1932.There in Section 4 you will find the definition like this ............"Section4
DEFINITION OF "PARTNERSHIP", "PARTNER", "FIRM" AND "FIRM-NAME".
"Partnership" is the relation between persons who have agreed to share the profits of
a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually,
"partners" and collectively "a firm", and the name under which their business is
carried on is called the "firm-name".
Thus under the partnership act the firm is not a separate entity and has no existence as such. It is only a collective name for the partners. But under the IT act the Firm is a separate taxable entity and is specifically included in the definition of "person" as per section 2(31).
Hope the above would to certain extent satisfy your requirements, I believe.
siva208@yahoo.com
Partnership Act, 1932 (9 of 1932) but the expression "partner" shall also include any person who, being a
minor, has been admitted to the benefits of partnership;
Thus to find out the meaning of the expression "firm" you will have to see the Partnership Act 1932.There in Section 4 you will find the definition like this ............"Section4
DEFINITION OF "PARTNERSHIP", "PARTNER", "FIRM" AND "FIRM-NAME".
"Partnership" is the relation between persons who have agreed to share the profits of
a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually,
"partners" and collectively "a firm", and the name under which their business is
carried on is called the "firm-name".
Thus under the partnership act the firm is not a separate entity and has no existence as such. It is only a collective name for the partners. But under the IT act the Firm is a separate taxable entity and is specifically included in the definition of "person" as per section 2(31).
Hope the above would to certain extent satisfy your requirements, I believe.
siva208@yahoo.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
