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TAXTION OF PARTNERSHIP FIRM IN CASE OF SHARE TRADING

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Vishal Suryan

6 Points Posted on 26 August 2022

How taxation of partnership firm is done in case of share market transaction

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Quick Summary

This discussion clarifies the taxation of partnership firms involved in share trading. It explains that the basic norms for capital gains remain the same. The total taxable profit is determined first, after which the profit attributable to the partnership is calculated and taxed according to the Income Tax Act 1961 for trades made through the firm's account.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 26 August 2022

Basic norms for capital gains remains same. Only after arriving at total taxable profit one has to determine the partnership profit and tax payable on the same as per Income Tax Act 1961