What is Partnership Firm? When two or more person agree to start a business which will be carried on by all or any of those partners acting for all, with an aim of earning profit out of the activities of the business, will be called as partnership firm. But the partnership firm is an independent entity like other individuals. Therefore the income of the partnership firm is calculated separately. Income of partners does not have any relation with the income of partnership firm. It means that the tax liability is calculated separately for on income of partners and partnership firm.
ITR 5 Return| How To Calculate Firm Income | Firm Income banking holidays
What is Partnership Firm? When two or more person agree to start a business which will be carried on by all or any of those partners acting for all, with an aim of earning profit out of the activities of the business, will be called as partnership firm. But the partnership firm is an independent entity like other individuals. Therefore the income of the partnership firm is calculated separately. Income of partners does not have any relation with the income of partnership firm. It means that the tax liability is calculated separately for on income of partners and partnership firm.
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