Private trust to act as a partner

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Shrenik (Querist)

25 April 2012 Dear Experts,

Pls. suggest me whether Private trust can become partner in partnership firm & if yes then share of income earned from business runned by this partnership firm is taxable in hand of trust or not?

Pls. relpy me urgently

Thanks in anticipation.

Ajay Mishra

Ajay Mishra (Expert)

26 April 2012 Hi

TYPES OF PARTNERSHIP
A Partnership can be formed between:
(i) one or more individuals or
(ii) between an individual and a person representing a H.U.F. or
(iii) between an individual and other partner representing his firm, or between Limited Company or a Corporation and an Individual or Partnership firm, or
(iv) between two Partnership firms, or
(v) between a Limited Company or a Corporation and an individual or Partnership firm, or
(vi) between a Partnership firm and H.U.F., or
(vii) between members of HUF in their individual and independent capacity, and
(viii) between a HUF and a member of that HUF independently.

Regards

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

01 May 2012 Yes you can make the private trust as a partner and the profit received from the firm is not table in the hands of the trust as it is already tax paid is exempted u/s 10

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