if the profit of the parnership firm transfers to parners capital account and the drawings are made from it is the drawings taxable just like u/s 40(b)
if the profit of the parnership firm transfers to parners capital account and the drawings are made from it is the drawings taxable just like u/s 40(b)
Hi Unnikrishnan,
Not taxable.
Tax can not be levied twice on the same profit, as partnership firm might have paid tax on its profit, the same profit which is credited to parnters' capital account can not be taxed again.
Regards,
Devanand
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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