Investment in partnership

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Ratnesh Tiwari (Querist)
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11 September 2017 If I invest my money in some Partnership Firm.
1. What is the right way to show this investment in my ITR?
2. Is this money exempted from tax?

RAJA P M

RAJA P M (Expert)
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11 September 2017 1. Investment A/c (Firm Name Capital Investment) 2. No. It's your on of the income before investment. I think You ll be show it in your income details in before...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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11 September 2017 1. Show as investment in b/s separately. No column in IT Return for it. 2. Neither taxable nor exempted. It is not your income.

Ratnesh Tiwari

Ratnesh Tiwari (Querist)
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18 September 2017 If someone let say, Mr. X (Mr. X is not partner of the Partnership Firm) transfer 5 lakh to current account of my partnership firm to help to run business and my firm invest this amount in equity share and earn 20% on the given amount by Mr. X and Share the Half profit With Mr. X

1. Is the given amount by Mr. X can be recorded as Capital and Free Reserves and If not Then
2. I want to know how my firm is going to keep this record (Book Entry)
3. how to calculate the taxation in given case above

Thank You

RAJA P M

RAJA P M (Expert)
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18 September 2017 He recorded as
1. Loan
2. Loans Liability & Interest
3. No more taxation... It's your expenditure. Also your CA ask the exact reason...

Ratnesh Tiwari

Ratnesh Tiwari (Querist)
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18 September 2017 Thank you very much, Sir

Ratnesh Tiwari

Ratnesh Tiwari (Querist)
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18 September 2017 How many people other than firm's partners can invest in my Partnership firm

RAJA P M

RAJA P M (Expert)
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18 September 2017 It's Not Investment for their hand....
It's Just loan...
Only partners can invest the firm.... Not others...

You can receive as Loan and Pay interest...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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18 September 2017 No one can invest in partnership firm other than partners. Other only provide you loan....

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