Income tax point of view


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Querist : Anonymous

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Querist : Anonymous (Querist)
28 June 2012 Can Any one tell me what are the Fiancial advantages of incorporating private ltd company over partnership Firm from income tax view point.

28 June 2012 From income tax point of view for claiming expenses, in partnership firm you have ceiling for remuneration to partners, while in Pvt ltd there is no ceiling for remuneration to director.

28 June 2012 Apart from that, in case of insolvency partners are personally liable for income tax but in case of Pvt Ltd company, directors are liable only in exceptional cases.

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Querist : Anonymous

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29 June 2012 Thank you..Sir..Now-a-days many firms are converting to private limited companies..why they are converting..?

01 July 2012 As Mr Amit said for partnership firm has impose more liabilities now partner instead on directors of company.

Company has self existence even every director will change, the company remain the same.


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