Partnership firm or proprietorship
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 July 2013
Mr. X Run a propreitorship firm.
Last Year NP was 670000/- Due to which a huge amount of tax was paid.
Now Mr. X want to reduce the liability
In the Current year
He is to open a new concern.
Which option he should go with propreitorship or Partnership firm ??
Q. Are Partnership firm are liable to be taxed after the payment of salary & Intt to the partner ??
Mr. X Run a propreitorship firm.
Last Year NP was 670000/- Due to which a huge amount of tax was paid.
Now Mr. X want to reduce the liability
In the Current year
He is to open a new concern.
Which option he should go with propreitorship or Partnership firm ??
Q. Are Partnership firm are liable to be taxed after the payment of salary & Intt to the partner ??
CA SUMiT PATWARi
(Expert)
07 July 2013
partnership firm will be liable to pay tax on the amounts beyond the permissible limits of deduction for salary and interest...
these deductions would be taxed in the hands of partners... share of profit would be exempt in hands of partners since already taxed.
so max tax saving will be the amount of tax on basic exemption limit of an individual... coz beyond that the partner would be himself assessed to tax.
these deductions would be taxed in the hands of partners... share of profit would be exempt in hands of partners since already taxed.
so max tax saving will be the amount of tax on basic exemption limit of an individual... coz beyond that the partner would be himself assessed to tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- GST on Renting godown to KFCSC for Storage of Raagi
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- TAX AUDIT ON PROFESSIONAL INCOME
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
