Partnership firm is different from Partners

Both have to compute tax and file their ITR (Income tax Returns) separately

 

For example:-

There is a Partnership firm SK Traders

which has  2 partners Sanjay and Kishan

 

There will be 3 ITR's filed,

1.SK Traders (Parnership firm Assessee)

2 Sanjay (Individual Assessee)

 

3 Kishan (Individual Assessee)

 

 INCOME TAX SLAB RATE FOR PARTNERSHIP FIRM

Particulars Rate On 
Income Tax Rate 30% On Income
     
Surcharge    
 If Income upto 1 Cr 0% On Tax
 If Income > 1 Cr 12% On Tax
     
Education Cess 3% On (Tax + Surcharge)

DOWNLOAD AND TRY

 

Q1 Suppose a Partnership firm earns a Profit of 20 lacs

What is income Tax Payable by it

View Answer

 Q 2

What is the tax payable in following cases in case of Partnership Business ?

 

Particulars Case 1 Case 2 Case 3 Case 4 Case 5
TAXABLE INCOME 20000 50000 400000 6000000 18000000
TAX 30%          
Surcharge @ 12%          
Tax + Surcharge          
Cess @ 3%          
Total Tax including Cess          
View Answer

Q3

Suppose Business Income is 100000, Calculate Tax in case of Proprietorship and Partnership

View Answer

Q4

A person wants to start a new business and expects to earn profit of 330000.

He has 2 Options

Open a Proprietorship

Open a Partnership with his wife

Which option is better?

View Answer

 

  1. Income Tax
  2. PGBP Income

About the Author

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.