Taxation on partnership

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Jay Sata (Querist)
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24 October 2012 hello
i wnt to know that what is the provision for tax on partnersahip & if firm pays the tax i.e.30% than partners are individually liable for taxation or not & IF YES than in which brakate????????

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 October 2012 Share of profit from the partnership firm is exempted income in the hands of individual partners. So due to the other income(i.e other than profit/loss from the partnership firm) his total income exceeds maximum basic tax exemption limit according to the individual assessees then only required to pay income tax according to individuals tax rate slabs.

OM SAI SRI SAI JAI JAI SAI

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Jay Sata

Jay Sata (Querist)
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24 October 2012 which profit is taxable profit of p & l A/c or after apportionmate?????

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 October 2012 which profit is credit to the partners capital account as share of profit from the partnership business is the exempted income. And remuneration/salary and interest on capital are the taxable incomes in the hands of partners.

OM SAI SRI SAI JAI JAI SAI

Jay Sata

Jay Sata (Querist)
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24 October 2012 OM SAI SRI SAI JAY JAY SAI

Sanjiv Dandona

Sanjiv Dandona (Expert)
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24 October 2012
As per provision of Section 10(2A) of the Income Tax Act Share of profit to a person who is a partner of a Partnership Firm which is seperately assessed to Tax is exempt in his hands. Thus, if the firm has paid tax on its profits, individual share of the partner will not be taxable in his hands.

However, as per provisions of Section 28(v) any interst,bonus,salary,comission or remuneration, by whatever name called, due to, or recieved by, a partner of a firm from such firm( to the extent allowed as a deduction u/s 40(b) to the said firm) shall be taxable in the hands of the Partner under the head ' Profits & Gains From Business & Profession'

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