a partnership is constituted with 7 partners having equal profit sharing ratio . a family agreement is made in which a portion of building is alloted to 7 members of the family , which members brings to the firm as their capital introduction . i means to say partnership firm is of 7 family members. can such a partnership firm be constituted, can firm claim depreciation on building , can firm come u/s 44ad of income tax act , where tax is leviable only on 8% of income .kindly reply urgently
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Partnership
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Is there any business being conducted ? Partnership can be formed with family members. There is no issue in it. Has the partnership being formed only to claim depreciation or any valid business being conducted? What is the purpose of forming the partnership
the partnership is constituted to get benefit of section 44AD as the rental income is heavy and , if put with individual heavy tax lability is coming of each family member so partnership is being formed so that only profit is taxable and family member draws fixed salary out of firm . however what shall be the source of capital introduction is major issue so family agreement was made and each member has been given their portion in building which they bring as capital introduction can such a firm be formed
You cannot take the benefit of Sec 44AD because the definition of eligible business in it covers only business of plying hiring leasing of goods carriage
44 AF COVERS business of plying hiring leasing of goods carriage. IT DOES NOT COME WITHIN
THE PURVIEW OF ELIGIBLE BUSINESS FOR 44 AD . KINDLY LET ME KNOW WHAT SHALL BE THE ANSWER KNOW ?
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