Liability of the registered firms to retain share of profits of the partners for payment of taxes--Section 182(4) of the Income-tax Act, 1961

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..... All Chambers of Commerce. Sir, Subject : Liability of the registered firms to retain share of profits of the partners for payment of taxes--Section 182(4) of the Income-tax Act, 1961. Attention of the Chambers of Commerce is invited to the provision contained in sub-section (4) of section 182 of the Income-tax Act, 1961, which requires that "a registered firm may retain out of the .....

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..... the amounts have to be retained only after the receipt of notice of tax demanded from the partners of the firm. As is clear from sub-section (4) of section 182 the legal liability to retain the amount equal to 30% of the share of each partner in the income of the firm arises even before the tax is levied by the Income-tax Officer and is communicated to the partners. In other words, the amount has .....

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