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 ??
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.
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