03 February 2013
respected sir, my client stated partnership without partnership deed from 1 April,2012. they opened accounts in bank in the name of one partner and receipt againts sale and all payments are made from this account. I want to file return for partnership upto july,2013. so tell whether can I disclose this account in partnership return? is there any problem under income tax?
03 February 2013
In case of Partnerships not evidenced by a deed, benefits of Interest and Remuneration to Partners are not allowed and the firm is required to pay tax @ 30%. . In the given circumstances it is better to treat the business under the proprietor's name and other partner may be given equivalent salary.
CAclubindia
