ASSESSMENT OF FIRMS

Though it is not necessary to attach any paper with the return. But is highly recommended that if the I. Tax deptt. is taking any documents then one must file the partnership deed with it. Yes u can also file the return through e-filing. In this also u r not required to attach any document.

The liability of FBT arises on the partnership firm or companies if any prescribed expenses have been made by the assessee. there is no point of amount of income for levying any FBT

Mr. Gopa Kumar

In respect your question no.3 the  following  is the answer:

If there  is no written  agreement  among  the partners  the status of such business organisation is an AOP.  Association of persons.  AOP is is also a taxable entity.  AOP is not eligible to claim interest on capital invested by  the memers (partners) and no remuneration paid to the members (Partners) is allowed in computing the total income.  

Please refer section  40 of the Income-tax Act for more clarification.

Best Wishes

Sathikonda

1. Do not opt for E-return. This is a new case, in terms of Income Tax Dept. File Paper return and attach copy of Partnership Deed.

2. In case of Firm and Company assessee, there is no threshold for FBT working. Pay the FBT with interest before filing return.

3. You can not club income derived before formation of partnership [date of deed]. Follow the suggestion from Sathikonda. TDS certificate issued for such transaction can be replaced with attesation of new PAN - for AOP status. Issuer has to file correction sheet to availt you credit of that TDS.

Mr.Gopa Kumar

Mr.Nitin Jain

and

Mr.M.K.Modi

Thank you all.  Let me clarify the matter regarding filing of attested copy of partnerhip deed alongwith paper return being filed by a firm for the first time.

The provisions of section 184 are as under:

Section 184(1) A firm shall be assessed as a firm for the purpose of this Act, if-

(i) the partnership is evidenced by an instrument; and

(ii) the invividual shares of the partner are specified in the instrument.

(2) A certified copy of the instrment of partnership referred to in sub-section (1) shall accompany the return of income of the firm of the previous year relevant to the assessment year commencing on or after the 1st day of April, 1993 in resepct of which asesment as a firm is first sought.

Explanation.- For the purposes of this sub-section, the copy of the instrument of partnership shall be certified in writing by all the partners (not being minors) or, where the return is made after the dissolution of the firm, by all persons (not being minors) who were parterns in the firm immediately before its dissolution and by the legal representative of any sub partner who is deceased.

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As per the provisions of section 184 a firm who wants to be assessed as such must file a certified copy of the partnership deed along with the return of income.  A firm once assessed as such shall continue to be assessed in the status of a firm.  If there is any change in the constitution of the firm  or any terms and regulalations of the deed of partnership a certified copy of retirement deed or an amendment deed as the case may be is to be filed along with the return of income for the relevant assessemnt year.

But

Section 139C says as follows:

139C(1) The Board may make rules providing for a class or classes of persns who may not be required to documents, statements, receipts, certificates, resports of audit or any other documents, which are otherwise under any other provisions of this Act, except section 139D, required to be furnished, alngwith the return but on demand to be produced before the Assessing Officer.

Hence it is clear that the Income Tax Authorties will make rules to suspend with the necessity of filing documents in our case certifiied copy of partnership deed.

As said above the CBDT as amended the Income-tax Rules, 1962. Sub-rule (2) of Rule 12.

The said sub-rule is as as udner:

(2) The return of income and return of fringe benefits required to be furnished in Form No.IT-1, ITR-2, or Form No. ITR-3, for Fomr No. ITR - 4 or Form No.ITR-5, or Form No. ITR-6 for Form No.ITR - 8 shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return or proof of the tax, if any, claimed to have been deducted or collected at source or the advacne tax or tax on self-assessemnt, if any, claimed to have been paid or any document or copy of any account or form or report of audit required tobe attached with the return of income or the return of fringe benefits under the provisions of the Act.

in the above rule document includes a certified copy of partnerhip deed.

Now you have got clarification.

Regarding AOP.  I advise you to file a seperate return of the AOP. Obtain a seperate PAN for AOP.  If there is no further business in the AOP after completion of the assessement.  You can give a notice to the assessing officer informing that the business of the AOP is discontinued.

Do not mix the business of AOP and the FIRM.

Best Wishes

Sathikonda

thak you friends for valuable suggestions....

any way i did efile the returns without attaching any copies of deed...paid fbt with interest...included tds sum credited just before deed date(treated as if it was advance)