Tax liability when transferring money to other firm

I think you came to a conclusion. That's why, You can't ask exact question. Your really confused with PAN right?

What did I understand from this?

1) How to reduce your tax liabilities?

2) Difference between proprietor, firm & PVT?

3) Then you want to Invest tax savings money into new business right?

Please confirm above questions whether I understood your need or not?

Firstly, please ask simple question. Then chat with our experts. Then you will get clarification.

Here you asked questions and suggestions yourself that's what made little bit complicated to understand.

Please confirm then I will reply.

🙏 Thanks

Dear Sir, 

Trying to rephrase the question. I hope I am able to get it right this time.

If a individual cosultant (business) makes Rs 1 crore net taxable profit in a fiscal.

Before the end of the fiscal, he wants to bring his net taxable profit down to zero. ( that is show an expense of Rs 1 crore)

Can he achieve that, in such a way, that there is no new tax treatment to this taxable net profit, by giving a loan or capital of Rs 1 crore to:

1) partnership firm in which he is partner OR
2) LLP in which he is a partner OR
3) Pvt Ltd in which is is majority shareholder.

Meaning, will he be able to book a complete expense of Rs 1 crore, and the firm/company is able to get the complete Rs. 1 crore with zero tax treatment.

Business consultant business fall under business and professional as per income tax under 44ADA.

How much your gross receipts?

In 44ADA, profit pre-defined as 50% based on your gross receipts after 50% of expenses deducted. 50% is default profit.

Note: You can't increase your expenses more than this fixed amount.

After that, you can have other deductions like, HRA, Professional tax, 80C and it's clauses.80D, so on in old regime. 

You can't avail any other deductions in new tax regime.

Is he registered himself any registration like GST?

Partnership firm - Tax @ 30%

Individuals partner should declare their income tax return seperately.

Private limited - ROC - Compliance to be followed very strictly. 

Income tax @ 25% upto1 cr, 

Tax RS.2.50,000+25% 1 cr to 10cr.

Tax RS.2.50,000+30% above 10 cr

Became partner, he will receive income from the business. This profit and remuneration add to your consultant business profit.