Capital Gain tax for Partnership Firms

Share
Share This Thread
  1. vishonboard

    vishonboard New Member

    Dear experts,

    I am looking to set up a partnership firm with main activity of trading/investing in capital market. Below is my understanding of taxation for the same.

    1. Income will be taxed @ 30 %
    2. Share and mutual funds SCG tax @ 15 %
    3. No long term gain ..

    based on that I tried to compare scenario of Partnership Vs individual captured in attached document.

    May I request expert opinion and comments, is it worth going for a partnership firm. Pros and cons of the same. calculations based on Ref : http://www.charteredclub.com/partnership-tax/
    (may have missed a finer details of some IT sections)

    Scenario:

    1. Partnership’s source of income is short term CG ONLY.
    2. Income of 5 lacs from Short term capital gain with delivery based trading (NO DERIVATES OR INTRADAY).
    3. Assuming there is no TAX liability on 3 lacs of Long term CG which is not shown in attached calculation.
    4. Borrowed 5 lacs and paying out interest @ 12 % per anm to 3rd party (non partner individual/entity)

    Query:
    If ONLY income is from capital gain for partnership, is it allowed to deduct expenses and what would be the final TAX rate on taxable amount is it 15 % or 30 % ?

    Regards,
    Vishonboard
     

    Attached Files:

Draft saved Draft deleted
Loading...
Similar Threads Forum Date
long term capital gain Income Tax Dec 10, 2018
Capital Gain on Sale of Foreign Shares Income Tax Jul 22, 2018
AGRI LAND SALE – CAPITAL GAINS EXEMPTION Income Tax Jul 12, 2018
Release of Funds from Capital gains account Income Tax Jun 7, 2018
Capital gain on property Income Tax Mar 21, 2018