Regarding income tax in case of partnership firm

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2013 Dear Sir,
Please tell me about income tax provisions regarding partnership firm.

I have calculated partnership firms income tax my following calculation is right or wrong please tell me

1) As per partnership deed A & B is partners both are 50-50 %

2) Firms profit before interest & remuneration =5,30,000/-

3)interest Received on partners drawing
A) 100000@12% = 12000.00/-
B) 100000@12% = 12000.00/-

4)Firm Profit after Interest received is :- 554000/-

5)Interest paid on capital
A) 200000@12% = 24000.00/-
B) 200000@12% = 24000.00/-

6)Firm Profit after Interest Padi is :- 506000/-

7) Remuneration paid to partners
On First 300000@90% = 270000/-
on balance amount 206000@60% = 123600/-

8)Firm Profit = 506000
Remuneration =-393600/-
Balance = 112400/-

9) Firm Income = 112400/-
income Tax@10.36% = 11645/-
Net Profit = 100755/-

Net profit transfer to partners capital a/c as per deed

10 Profit Transfer to A =50377.00
Profit Transfer to B =50378.00

Please tell me above calculation is right or wrong. Above figures in taken for example.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

03 November 2013 Rate of income tax for partnership firm is 30.90% including cess and sccondary and higher education cess.

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2013 Sir I know income tax rate is 30.90% my query is calculation is right or wrong. I have calculated this figures as per example basis. So please tell me this calculation is right or wrong.

Thanks