Separate assessment for partner of a firm.
This query is : Resolved
03 November 2013
Will a partner of a firm be assessed again to determine his taxable income after assessment of his firm's income? If yes, income of the firm is taxed twice, firstly in the hands of the firm and secondly in the hands of such partner. Isn't it?
03 November 2013
i) Share of profit of a partner is exempted u/s. 10(2A) of the Income tax Act,1961. Hence, income is not taxed twice.
ii) If salary and or interest is paid by the firm to the partner, it is assessed in the hands of the partner being an allowable expense for the firm subject to the limits u/s 40(b) of the said act.
ii) If salary and or interest is paid by the firm to the partner, it is assessed in the hands of the partner being an allowable expense for the firm subject to the limits u/s 40(b) of the said act.
Message likes :
1 times
03 November 2013
Thank you sir. My doubt is cleared.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Rental income gst and it purpose
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- EPF FULL & FINAL RULES IN 2026
- Management System (IMS)
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
