Partnership to properitorship firm

It Depend upon your income , If your income is Under Rs 10,00,000/- than it is always profitable to convert Partnership firm to Proprietorship firm because under Proprietor ship firm Income tax is Based on Salab rates as comapared to Partnerhip firm it is always 30 % but at the same time Risk is double as comapare to Partnerhip firm.

There are some Tax benefits which are available if an individual is engaged in sole proprietorship business rather than Partnership Business.The exemption as per the income tax slab is available to the individual but not for Partnership.Tax rate for Partnership Firm is flat 30% on business profit but an individual will have benefit of slab rates.Apart from that sec 80 C ,80 D,80 E etc deductions are available are for ndividual or HUF not for Partnership Firm.The After tax profit shared among partners is exempt from tax since it has already been taxed.

But if you adopt Presumptive Taxation then partnership firm has one advantage over Individual firm that it can still claim deduction for partner's salary/interest sub. to limitation u/s 40(b).