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Section 80iba,tax free profits
If the partnership firm doing the project under 80iba,the profit earned is tax free. The firms pays remuneration & interest on capital to the partners as per section 40. Whether this amount is tax free for individual partners. I read one case in which these are rejected in appeal also, being return not filed on time. But the case does not reflect whether such income to partner is tax free. Please guide.
Replies (3)
Remuneration & interest paid to partners is not tax free. Only the net profits earned by the firm, when distributed to capital accounts of partners is tax free.
Is it necessary to pay reenumeration to partners. Only profits will be distributed to capital ac, of LLP firm
Depends upon the LLP deed of incorporation. Unless specified in it, its not mandatory.
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