catchwords: partnership firm
Whether On Retirement Of Partner From The Firm Is Liable To Tax On Excess Amount Received?
Section 45(4) of the Income-tax Act, 1961 provides that, profits or gains arising from transfer of capital assets by way of distribution of capital assets on dissolution of a firm, association, etc. “or otherwise” shall be chargeable to tax as income of the firm, association, etc. of the previous year in which the said transfer takes place and for purpose of section 48,
Whether On Distribution Of Assets By The Firm Would Be Liable TO Tax On Dissolution Or On Distribution?
If plant and machinery are withdrawn by the partners at book value during the continuance of partnership firm, then, the same can be debited to partners ac-count and credited to plant and machinery account in such case there is no question of any liability of capital gains. [See Malabar Fisheries Co. [120 ITR 49 (SC)]
Whether Distribution Of Assets By A Firm Would Be Liable To Tax?
(i) Section 45(4) of the Income-tax Act, 1961 would not be applicable, as M/s. GE is holding properties as stock-in-trade. Now, as per the query M/s. GE want to distribute the stock-in-trade to its partners. In other words, the partners would withdraw the stock from business. In Sir Kikabhai Premchand v. CIT [24 ITR 506],
Is Retiring Partner Liable To Tax If He Receives In Excess Of His Capital Account?
The manner of settlement of account may decide liability. In Sudhakar M. Shetty v. ACIT [130 ITD 197 (Mum)], the retirement deed conveyed interest in immovable property and after retirement he had no interest over the assets of the firm.
Whether U/s. 44AD The Limit Is Qua Assessee Or Qua Business?
Qua both. The scheme is applicable to “an eligible assessee engaged in eligible business” The salient features of the new presumptive taxation scheme are as under: a) The scheme is applicable to individuals, HUFs and partnership firms excluding limited liability partnership firms. It is also not be applicable to an assessee who is availing deduction under sections 10A,
How TO Calculate Limit Of Turnover In A Person Is Carrying Out Business And Profession?
No, as Mr. P’s gross receipts from the profession are less than Rs. 25/- lakhs. As per Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961 issued by
Whether Remuneration To HUF Partner Is Allowable?
No remuneration is allowable to HUF. Remuneration can be paid to Karta of the HUF, if he is a working partner in his individual capacity. The Supreme Court in CIT vs. Trilok Nath Mehrotra & Others [231 ITR 278] has held as under: “If a member of a Hindu Undivided Family joins a partnership
Whether Remuneration To Partners On “Book Profit” To Be Worked Out At The Year End?
The payment of remuneration within the prescribed limits to working partners is allowable. Such remuneration is allowable on the basis of ‘book profit’ as defined in Explanation 3 to section 40(b) of the Act.
Whether A Firm Is Entitle To Claim Deduction U/s. 35AD @ 150% Of Investment In Assets?
a) Yes, the partnership firm can claim deduction under section 35AD @ 150% on capital expenditure incurred for setting up and operating hospital anywhere in India with more than 100 beds for patients. From the fact, it is clear that no old machinery would be transferred to new building/unit, hence, it would not be set up by splitting up or the reconstruction of a business already in existence.
Will There Be Any Tax Implication In The Hands Of Shares Holder In A Private Limited Company?
From the facts, it is clear that section 2(22)(e) of the Income-tax Act, 1961 is clearly applicable, irrespective of the fact whether X is managing the company’s business or not. Therefore, any loan given to a partnership firm wherein X has substantial interest i.e. he is beneficially entitled to 20% or more share of the income of the firm, the provision is applicable.