Treatment under rule 8D of Income Tax, Income Tax

[Anil Singhania]

Dear Sir,

Please suggest me wrt to the following issues:

1. A unlisted public company becomes a partner in LLP and having profit sharing ration is more than 50%, 

As profit of LLP is taxable in the hand of LLP and not in the hand of partners so in the case if a unlisted public company is partner, WHAT WOULD BE TREATMENT OF EXEMPTED PROFIT RECEIVED BY SUCH COMPANY AS PER RULE 8D OF INCOME TAX?

Posts / Replies

[tarsem gupta]

The income from share from firm is exempt from tax u/s 10(2A). Under section 14A read with rule 8D any expenditure incurred on the exempted income is not allowable as deduction from the Income of the assessee.