Practical Income Tax

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,

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 4% On (Tax + Surcharge)

Q1 Suppose a Partnership firm earns a Profit of 20 lacs

What is income Tax Payable by it

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 @ 4% Total Tax including Cess

Q3

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

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?

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