SHALL ANY INCOME EARNED BY ANY PARTNERSHIP CONCERN , ENGAGING IN TRANSACTION NOT AUTHORISED BY PARTNERSHIP DEED BE TAKEN INTO ACCOUNT WHILE COMPUTING INCOME UNDER THE HEAD P/G/B/P OF THE FIRM AND ALSO IN BOOK PROFITS TO BE COMPUTED U/S 40(b) ?
( e.g FIXED DEPOSIT INTEREST WHEREAS INVESTMENT IN FIXED DEPOSIT IS NOT AUTHORISED BY PARTNERSHIP DEED )
PLEASE LET ME KNOW AS SOON AS POSSIBLE .
Restruction on doing business(require authorised by partnership deep) is restructed by the Partnership act. But income tax purpose all incomes are liable for tax(eventhough illegal activities). So u have to offer income from FDs to incometax. I think the partnership business is not the investments in FDs so it will consider as other Income for tax purpose thus it will not includable for computation of BOOK PROFIT.
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