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Commerce · Q27

Income Tax and Corporate Tax

Graduate and Post Graduate · Commerce · question 27

Q27

Which one of the following statements is not correct with reference to the assessment of firms?

A.
All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961
Answer
B.
Income of a firm is taxable at a flat rate of 30% without any exemption
C.
Partners' share in the income of a firm is not chargeable to tax in the hands of partners
D.
Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit

Answer: Option A

Solution

Answer: Option A
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