Income tax and partnership firm
This query is : Resolved
CA Shraddha Vora
(Querist)
09 June 2015
Whether a partnership deed can include a clause relating to disbursement of profits, wherein the decision relating to distribution of profits for a particular year is subject to the discretion of the firm? What would be the tax treatment of such accumulated profits in the year when such profits are distributed in the profit sharing ratio, in hands of the partner?
CA Kapil Verma
(Expert)
09 June 2015
1. yes deed can have this kind of clause
2. The accumulated profit it taxable 30% (pulse edu cess etc)
2. Profit from the partnership firm is exempted form income tax in the hand of partners.
CA. Kapil Verma
Founder-taxadvizer.com
2. The accumulated profit it taxable 30% (pulse edu cess etc)
2. Profit from the partnership firm is exempted form income tax in the hand of partners.
CA. Kapil Verma
Founder-taxadvizer.com
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