Partnership with wife

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This discussion clarifies whether a husband and wife, both medical professionals, can establish a partnership firm to operate a hospital, even if the wife is an inactive partner. The consensus is that they can indeed form such a firm and allocate profits according to their partnership agreement. Importantly, the clubbing provisions of the Income Tax Act are unlikely to apply if both partners are capable of contributing to the business.

Tejasva deshmukh

Tejasva deshmukh (Querist)

04 March 2022 If both Husband & Wife are Doctors & if wife remains as inactive partner can they both a form a partnership firm and run a hospital in the name of the firm??

Please provide guidance on Clubbing provision & other applicable provision of I.Tax Act.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 March 2022 Yes, they can form partnership firm and share its profits as per percentage of shares specified in the deed. No clubbing provision applicable when both are capable to run the business .

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Tejasva deshmukh

Tejasva deshmukh (Querist)

04 March 2022 Thank You Dhirajlal Rambhia Sir

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 March 2022 Most Welcome ...

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