I want to form a partnership firm with some of my colleagues.This firm will deal in purchase and sale of shares on delivery bases and also on intraday basis.
I want to know that if my partneship firm gains some profit then what will be the tax liability.
If this will be considered as a business income then this will cost more to partners who will earn say 10000 from profit in this firm but he will have to pay tax on this income too (even he do not have other income sources), whereas if someone opens individual trading account and he gains 10000 then there is no tax liability on him/her.
Please let me the tax liability of partnership firm trading in shares.
Regards,
Sanjay Chauhan
CAclubindia
