Partnership

Taxation of Partnership Firms

Income Tax - Remuneration to Partners -1. Payment 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. 3. Quantum of allowance is to be determined with reference to ‘book profit’ which is defined to mean an...

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Transfer of property between firm & partners –Taxation aspects

Income Tax - S. 45(3) and S. 45(4) were brought in to the statute book to deem pooling of assets by partners in to the firm and distribution of assets by the firm to partners on dissolution or otherwise, as transfers for tax purposes with a view to block certain escape routes for avoiding capital gains tax....

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Introduction to Partnership

Income Tax - Introduction to Partnership ♣ Partnership is an association of two or more individuals who agree to share the profits of a lawful business. ♣ It is managed and carried on either by all or by any, or some of them acting for all. ♣ The formation of partnership is easy and simple. ♣ Each member […]...

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Taxation of Partnership Firms and LLPs

Income Tax - A charge imposed by government on the annual earnings (either earned# or unearned$ Income) of a Person (Section 2(31))....

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Partnership deed needs to be Registered or Notarized?

Income Tax - A partnership agreement is a necessity if you’re opening a business with another person. The agreement serves two purposes: it creates a legal document that provides for the rights and responsibilities of each partner and it provides you with legal recognition from the state, allowing you to do business. 1. Create a partnership agre...

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Inviting Expression of Interest -Study Group: RoF Related Issues In Maharashtra

Income Tax - ICAI Committee on, Economic, Commercial Laws & Economic Advisory is forming a Study Groups for the subject – RoF Related Issues In Maharashtra....

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Section 138 Prosecution not hit by bar created by Section 69(2) of Partnership Act

Narendra Vs Balbirsingh (Bombay High Court) - The prosecution of an accused under Section 138 of the Negotiable Instruments Act, 1888, is not hit by the bar created by sub-section (2) of Section 69 of the Indian Partnership Act, 1932....

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Partnership deed not automatically binds legal heirs of deceased partner

S.P. Misra & Ors. Vs Mohd. Laiquddin Khan & Anr. (Supreme Court) - S.P. Misra & Ors. Vs Mohd. Laiquddin Khan & Anr. (Supreme Court) It is true that as per the deed of partnership, the partners have agreed, in the event of death of either party, their respective legal representatives shall automatically become partners in the partnership firm and they shall ...

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Profit exempt in Partnership cannot be taxed in Partners Account

DCIT Vs M/s. Bakeri Construction Pvt Ltd (ITAT Ahmedabad) - CBDT itself has accepted the proposition that the share income from the firm received by the partners is exempt u/s 10(2A) of the Act and under no circumstances can be taxed in the hands of the partners. ...

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HUF or its Karta cannot become partner or designated partner in LLP

General Circular No. 2/2016 - (15/01/2016) - General Circular No. 2/2016 Reference is invited to General Circular No. 13/2013 wherein, in paragraph 2, it has been clarified that 'as per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. A HUF cannot be treated as a body corpo...

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Limited Liability Partnership (Amendment) Rules, 2015

G.S.R. 785 (E) - (15/10/2015) - For the purposes of the proviso to sub-section (1) of section 58 of the Act, where the firm has been converted into limited liability partnership, an intimation of such conversion to the concerned Registrar of Firms shall be given in Form 14 within fifteen days of the date of registration of the Lim...

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Trust/trustee as a partner in LLP – Clarification

File No. 2/3/2014 CL-V - (14/10/2014) - Clarifications have been sought on whether a trust or a trustee representing a trust in the case of "Real Estate Investment Trust" (REIT) or "Infrastructure Investment Trust" (InvITs) or such other trusts set up under the regulations prescribed under the Securities & Exchange Board of India Act, 199...

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Maharashtra Govt doubled Partnership Fees w.e.f. 25/10/2013

Notification No. No IPA. 2012/329/CR - (23/10/2013) - Maharashtra Government has vide Notification No. No IPA. 2012/329/CR 59/Desk-1 Dated 25.09.2013 has doubled the fees for partnership related issues. Revised rates are as follows :-...

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HUF or its karta can not be designated partner in LLP

General Circular No. 13/2013 - (29/07/2013) - It has come to the notice of the Ministry that some Hindu Undivided Families (HUFs) / Kartas of such families are applying to become partner/ Designated partner (DP) in LLPs and a question has arisen whether a 'HUF' or a karta can be allowed to do so. The matter has been examined in consultation wit...

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Recent Posts in "Partnership"

Taxation of Partnership Firms

Remuneration to Partners -1. Payment 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. 3. Quantum of allowance is to be determined with reference to ‘book profit’ which is defined to mean an...

Read More
Posted Under: Corporate Law |

Transfer of property between firm & partners –Taxation aspects

S. 45(3) and S. 45(4) were brought in to the statute book to deem pooling of assets by partners in to the firm and distribution of assets by the firm to partners on dissolution or otherwise, as transfers for tax purposes with a view to block certain escape routes for avoiding capital gains tax....

Read More
Posted Under: Corporate Law |

Introduction to Partnership

Introduction to Partnership ♣ Partnership is an association of two or more individuals who agree to share the profits of a lawful business. ♣ It is managed and carried on either by all or by any, or some of them acting for all. ♣ The formation of partnership is easy and simple. ♣ Each member […]...

Read More
Posted Under: Corporate Law |

Section 138 Prosecution not hit by bar created by Section 69(2) of Partnership Act

Narendra Vs Balbirsingh (Bombay High Court)

The prosecution of an accused under Section 138 of the Negotiable Instruments Act, 1888, is not hit by the bar created by sub-section (2) of Section 69 of the Indian Partnership Act, 1932....

Read More

Taxation of Partnership Firms and LLPs

A charge imposed by government on the annual earnings (either earned# or unearned$ Income) of a Person (Section 2(31))....

Read More
Posted Under: Corporate Law |

Partnership deed needs to be Registered or Notarized?

A partnership agreement is a necessity if you’re opening a business with another person. The agreement serves two purposes: it creates a legal document that provides for the rights and responsibilities of each partner and it provides you with legal recognition from the state, allowing you to do business. 1. Create a partnership agre...

Read More
Posted Under: Corporate Law |

Partnership deed not automatically binds legal heirs of deceased partner

S.P. Misra & Ors. Vs Mohd. Laiquddin Khan & Anr. (Supreme Court)

S.P. Misra & Ors. Vs Mohd. Laiquddin Khan & Anr. (Supreme Court) It is true that as per the deed of partnership, the partners have agreed, in the event of death of either party, their respective legal representatives shall automatically become partners in the partnership firm and they shall continue to act as partners of […...

Read More

Partnership Registration

ABOUT PARTNERSHIP When a group of individuals known as partner, decide to set up the business and form a relationship to share the profits of the business carried on by all or any one of them acting for all, they form a partnership amongst them which is governed and regulated by agreement formed between them. […]...

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Posted Under: Corporate Law |

Conversion of Partnership Firm into Private Limited Company

Relevant Sections / Rules – Part XXI of the Companies Act, 2013 read with Companies (Incorporation) Rules, 2014 Requirements: a) Registered Partnership firm with minimum 2 or more Partners b) Minimum Share Capital shall be Rs. 100,000 (INR One Lac) for conversion into a Private Limited Company c) There must be provision in the Partnersh...

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Posted Under: Corporate Law |

Difference between Partnership Firm, LLP and Company

Before starting our business, a businessman first thinks about how he/ she can start the business. The nature and complexity involved in different business formation are different. Hence the businessman has to choose the nature very carefully by thinking about the nature of business/profession, going concern analysis, brand image, area of...

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Posted Under: Corporate Law |

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