A private limited company investing in two partnership firms

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Navin Kumar Kurna

Income Tax Inspector

32 Points Joined December 2015

A private limited company invested in two partnership firms.
a) income from partnership firm is non taxable u/s 10 - am i correct.
b) whether this income from partnership firms will attract 14A (rule 8D) disallowance.

Replies (2)

Kapadia Pravin

17264 Points Joined December 2018

A). you are correct. it's Exempt under 10(2)

b). yes it will attract 14A disallowance

Guest

A) Section 10(2A) exempts only share of profit received by partner from the partnership firm.

b) Yes, section 14A will get attracted because you can't allow any expenses which have incurred in relation to the exempt income.