Share of Profit

Megha dear... i know u r not INCORRECT,..., but y do u think that i'm not correct???

Let me explain u my point and what others too are trying to say...

Now, according to u, Rs. 10000 will be credited to the account of partner (i.e pre tax profit), agreed... But dear, that partner is not getting the benefit of Rs. 10000, rather he's getting the actaul benefit of Rs. 7000 (coz firm is paying tax on its income of Rs. 100000).....

That means, parnter too (indirectly via partnership) is paying tax on such income and thus the net income in his hands is Rs. 7000 only....

i think amir and dhiraj both r right in their respective point of view..........................

For the purpose of ITR, or any other documents we do credit amount of Rs. 10000, but considering the final balance or the capital account of that partner..., the net impact of such income is only Rs. 7000....

So, the actual benefit to partner is Rs. 7000... Why such long discussion going on this topic??

U and amir, both are not ready to accept even what we are saying

Dear Dhiraj,

My friend it's not that I m not ready to accept ur view, It;s just that question was asked  regarding the amount to be shown in the ITR of a Partner as exempt...

Anyway if still u feel that i was rude then sorry brother, I didn't mean it..

Originally posted by : Amir
	Dear Dhiraj, My friend it's not that I m not ready to accept ur view, It;s just that question was asked  regarding the amount to be shown in the ITR of a Partner as exempt... Anyway if still u feel that i was rude then sorry brother, I didn't mean it..

Hey, no need of sorry.... I didnt feel anything wrong, it was just that u wud have explained the same thing earlier....

Yaar dosto me kaisa regret....

Hi Dhiraj.... Amir is right... Section 10(2A) clearly spells it....

Arey yaar...

Who said that amir is incorrect???

Its just that we gave different opinions... None of us are incorrect...

Dear Dhiraj,

Thanks Bro..

By distributable profit we mean After Tax profit only...so exempted amount should be Rs.7000

Well.................After Tax shud Be Give Preference..

 Both Concepts are Rite as given dhirav & Mr Active Member i.e amir....

Its DHIRAJ yaar.... maine apne naam ki kam band bajai hai, jo tum log bhi baja rahe ho???

Nywz, thanx for ur political answer

 Hi frnds,

According to me we have to transfer the profit of the firm after tax to the partner's capital account. 

@ Dhiraj

i agree dhiraj, u r rite... i didn't say u r not correct....

if u wnt 2 get entry in capital a/c thn its 7000 as explain by u is absolutely correct....

Bt ITR mein v will hv 2 show Rs. 10,000 only...  i hv discussed this point with my CA also...

he too told its distribution of TAXABLE INCOME and not PROFIT AFTER TAX.... further u cannot claim amt of tax paid by p.fimr as expense....

Originally posted by : Venkat M
	After tax profit to be considered . In this case Rs.7000

hii

i have seen  practically .....Rs 10000/- shall be added in partner return u/h PGBP....

Dear Member frnds.

Pls help in  the query as follows:

GTI of Partnership Firm(PFAS)       Rs 1 Cr

Less: Chapter VI A deduction          Rs 40 Lacs

TI of PFAS                                           Rs  60 Lacs                            

Suppose As per P/L a/c profit distributable to the partnership firm is Rs. 1 Cr

Now if there are two partner ( equal ratio) we will take Rs. 50 Lacs in the captial account of a partner

As per Section 10(2A) and its explanation the amount of Exemption will be share of TOTAL INCOME of the firm

therefore we will take 50% of Rs. 60 Lacs as shown above . that is exemption amount will be 30 lacs

That means the amount of Rs. 20 lacs (Rs, 50 lacs - Rs. 30 Lacs) will be  taxable 

Though we know that it is not the case but I want ur expertise reply strictly adhering to the Act and its rule ..

Waiting for genuine answer..

Anil