hi friends,
A partnership firm having 3 partners and an individual (X) enter into a joint venture for construcion business. The share of their profits from the JV are known. I want to know the tax implications of the profits earned from the joint venture. Is any TDS applicable when these profits are distributed. And also. what can is the way out if the income is to be assessed in the hands of the venturers and not the AOP(joint venture).
Dear Friend Joint venture is temporary partnership hence same is assessed under IT Act as Firm and any profit earned by JV shall be taxable in the hand of JV at normal rates -30% since same is taxable in the hand of JV, its distribution to partners is exempt. thus share of profit from JV is exempt u/s 10(2A), However any salary/ remuneration or interest shall also liable to betaxed in the hand of partner to the extent of expenses allwed in the hand of firm . Further no TDS applicable on such payments if receipient is resident.
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