Income tax treatment
This query is : Resolved
16 December 2019
Hi
My client having partnership firm covered under tax audit.Duly filed Audit report and income tax return of firm.Now partners wanna to file individual return of income tax return for Ay 2019-20.In tax audit we have shown 350000/- as per remuneration and Rs 226000/- as interest on capital for both partners each.
First question whether both interest on capital and salary will be taxable in partners's individual hand??
if yes what type of expenditures we can claim in individual income tax return of partners to save tax??
Third we have already claimed interest on capital and remuneration as an expenditure in firm profit and loss account?is there any claim/credit against int on capital and remuneration in partner individual tax return?
Suggest effective tax treatment to save tax in individual income tax return.
Regards
Sachin Alwadhi
My client having partnership firm covered under tax audit.Duly filed Audit report and income tax return of firm.Now partners wanna to file individual return of income tax return for Ay 2019-20.In tax audit we have shown 350000/- as per remuneration and Rs 226000/- as interest on capital for both partners each.
First question whether both interest on capital and salary will be taxable in partners's individual hand??
if yes what type of expenditures we can claim in individual income tax return of partners to save tax??
Third we have already claimed interest on capital and remuneration as an expenditure in firm profit and loss account?is there any claim/credit against int on capital and remuneration in partner individual tax return?
Suggest effective tax treatment to save tax in individual income tax return.
Regards
Sachin Alwadhi
16 December 2019
1 Yes both are taxable in partners hands.
2 Interst on borrowing if any for investment in capital of firm and 80c deduction.
2 Interst on borrowing if any for investment in capital of firm and 80c deduction.
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