Article explains Registration Procedure Taxation of Partnership Firms /LLP which includes Income Tax Rate applicable and Provisions related to
-Interest and Remuneration to Partners/Designated Partners, Conditions for assessment as a firm, Partners’ assessments, Losses of the firm.
-Due dates for filing return of firm, Allowability of remuneration and interest vis-a-vis presumptive .
-ITR Filing For Partnership Firm
-Compliance Each Year
|Net Profit as Profit & Loss Account Year ending 31.03.20xx||XXX|
|Add/(Less): Income Assessable under Other Heads of Income||XXX/(XXX)|
|Add: Expenses Admissible but not Debited to Profit & Loss Account||XXX|
|Less: Expenses Inadmissible but Debited to Profit & Loss Account||XXX|
|Add/(Less) : Adjustments as per Income Computation & Disclosure Standards||XXX/(XXX)|
|Profit As per Income Tax Act 1961||XXX|
The PGBP computation of Income of partnership firm is alike to Computation of PGBP income for Individuals Subject to Maximum capping in case of few expenses. Some of which are as follows.
Major Things to Be Taken Care of
1.Payment of Remuneration to a non-working partner will not be allowed as a deduction.
2.. A ‘working partner’ is an individual who is actively engaged in conducting the affairs of the business or profession of the firm.
Maximum Salary Allowed :
a. On the first 3,00,000 of book profits or in case of a loss
a. Rs. 1,50,000 or
b. at the rate of 90% of the book profit
c. (whichever is higher).
b. On the balance of book profits at the rate of 60%
|Due Date||Advance Tax Payable|
|On or before 15th June||15% of advance tax|
|On or before 15th September||45% of advance tax|
|On or before 15th December||75% of advance tax|
|On or before 15th March||100% of advance tax|