Need expert advice please, Income Tax

[hazel welton]

Hi all,

I’m running a partnership business with my 3 partners (total 4 members). Our clients are outsiders and getting the amount as Dollar through paypal and it will be credited in our company account after the INR conversion. Its an export of service and now we are having some doubts regarding the income tax. We (4 partners) are dividing the total net income after deducting all the expenses of company and the company is paying the income tax for this net income too. We are dividing the amount equally from that net income and the income tax for that already paid by the company. So, should be again pay personal income tax for the amount we are dividing?

For example;

If the companies turnover = 30 Lakh

Company expense = 10 Lakh

----------------------------------

Net profit = 20 lakh

We are paying company income tax for this net income 20 Lakh and after that dividing it equally as 4 shares (20/4=5 Lakh).

So, 5 Lakh is our individual income and should we pay the income tax again for this personal income?

Posts / Replies

[MUKUND THAKKAR]

need not to pay individually, once income comes to you after paying the income tax. you just shown in individual return.

[DEEPAK BISSA]

hi,

Profit received from partnership firm exempt u/s 10(2A) of IT Act 1961. So there is not income tax paid.

Sushil Gupta

LLB Income Tax