is there any way where a partnership is not charged to income tax separately.?



Is it possible that the profit of the firm is charges to income tax in the hand of the partners and not separately as a firm.

is there any way where a partnership is not charged to income tax separately.?
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One Reply to “is there any way where a partnership is not charged to income tax separately.?”

  1. A partnership is treated as a separate entity for tax purpose. A partnerhip with a proper partnership deed is taxed as a partnerhip, and if no partnership deed exists, it is taxed as AOP. Normally it is better to be taxed as partnership. Partnership can pay salary and allowances to the partners (which partners must report of their individual tax returns) and take deduction for it. The partnership profit after paying income tax is not taxable in the hands of partners.
    Read http://mytaxes.in/index.php?topic=20.0





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