Hello
i would like to know if i will have to pay income tax after paying tax on profit made from partnership firm
for example: my uttar pradesh bases partnership firm has two members on 50:50 basis and the firm made a profit of say 20 lacs after deducting all the expenses.
now what will the tax liabilities on the firm and its partners?
If i pay 30% on profit i.e 6.0lacs, would i still have to pay any other taxes?
thank you
salary , interest on capital given by firm AND MOST IMPORTANT all benefits givwn by firm for which firm had claimed as expense and deducted from income will be chargeble in hands of partners.
But profit of firm that is distributed in your case after tax 14L (20L-6L) will be exempt in the hands of partners.
Feel free to call
CA Shubham Gupta
9968983550
Thank You for your response Sir. So if we have no salary clause but profit sharing only then after paying 30% tax, we wont have to pay any other taxes on remaining 14 lacs?
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