Partnership firm
This query is : Resolved
RAMANDEEP SINGH
(Querist)
07 December 2017
Firm started on 1.4.16 with 2 partner. Introduced capital of 50 lakhs each. At the year end
firm paid intt on capital@ 20% only and didn't paid any remuneration. Firm will be allowed intt on Cap @12% and disallowed @8%. each partner is getting 10 lakhs as intt. there is no other income except intt on cap in hand of partner
I have dought regarding the taxability in the hand of partner. plz discuss tax liability in their hands
firm paid intt on capital@ 20% only and didn't paid any remuneration. Firm will be allowed intt on Cap @12% and disallowed @8%. each partner is getting 10 lakhs as intt. there is no other income except intt on cap in hand of partner
I have dought regarding the taxability in the hand of partner. plz discuss tax liability in their hands
07 December 2017
As per proviso to section 28(v) , Rs. 6,00,000/- (12% of 50 lakhs) has to be offered
by each partner in their individual return under the head ' income from business'.
by each partner in their individual return under the head ' income from business'.
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RAMANDEEP SINGH
(Querist)
07 December 2017
Sir you mean to say that 6 lakhs will be taxable to partner and what about the remaining 4lakhs.
07 December 2017
4 lakhs per partner will be disallowed in the firms INCOM TAX purposes on which
firm has to pay income tax.
firm has to pay income tax.
RAMANDEEP SINGH
(Querist)
08 December 2017
THE CONCLUSION IS THAT PARTNER HAVE TO PAY TAX ON INCOME RECEIVED UPTO 12% OF INTT ON CAPITAL. AFTER 12% PARTNERS ARE NOT TAXABLE AT ALL IRRESPECTIVE OF THE AMOUNT OF INTT. IN MY QUESTION 8% WILL NOT BE TAXED TO PARTNER BUT ONLY THE FIRM.. SAME WILL BE IN THE CASE OF SALARY. OK
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