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A partner in firm can be employee in bank ??

Tax queries 247 views 2 replies

Swapnil

Student

183 Points Joined April 2012

Plz Guide...

My Sister is a partner in my fathers business for 20% from 2015. Recently she got job in Axis Bank as Asst. Manager. While applying for Business Loan Axis Bank manager told that She cant be a partner in a firm as she is an Employee in bank. He is not sure about it so he advised to take tax consultants opinion.

Please guide me whether my sister has to withdraw her partnership from business or she can continue as a partner along with her job in Axis Bank.

Replies (2)

CS M Pota

Company Secreatary

3186 Points Joined July 2012

There is no such provision in the Income Tax Act.Axis bank may have problem as per it's internal rules that Axis Bank employee should not be engaged in any business or profession along with the job of Axis Bank.

If the restriction is Axis Bank internal the same either should be in the appointment letter of your sister or get checked with HR department of Axis Bank.