Assessment of Partnership Firms, LLP, AOP & BOI – CS Executive Tax Laws MCQs

Ram & Co., a partnership firm worked out total book profits for the year ended 31st March 2021 of ₹ 6,00,000 and has made payment of salary of ₹ 4,60,000 authorized by the partnership deed to the working partners. The firm wants to know that how much amount of salary paid to partners be allowable as deduction in A.Y. 2021-22.

The tax shall be charged on the total income of the AOP at the maximum marginal rate under the provisions of Section 167B of Income Tax Act, 1961:

DJPA, LLP, resident in India has received a dividend of ₹ 15 lakh from R Ltd., an Indian company.

Ram & Co., a partnership firm, worked out total book profits for the year ended 31st March 2021 at ₹ 5,00,000. The firm has made payment of salary of ₹ 4,60,000 authorized by the deed to the working partners and wants to know that how much amount of salary paid to partners is allowable:

Mr. Vijay is a partner in Tools & Co., a partnership firm in Mumbai. He received ₹ 30,000 as share income from the firm for the year ended 31.3.2021. He also received interest at 12% per annum on the capital invested in the firm and the amount being ₹ 24,000.

The provisions of Alternate Minimum Tax (AMT) will apply only when the adjusted total income computed under section 115JC exceeds:

Murali & Co. a partnership firm consisting of 3 partners is engaged in the textile trade. Its net profit before allowing interest on capital and working partner salary to partners was ₹ 9 lakhs. The partnership deed does not provide for interest on capital. It provides for working partner salary at ₹ 25,000 per month each for all the 3 partners.

The provisions of alternate minimum tax under section 115JC are applicable for limited liability partnership when the adjusted total income exceeds:

Surabi Textiles (firm) incurred a business loss of ₹ 4,40,000 for the assessment year 2021-22 before the allowance of working partner salary. The firm paid a working partner salary of ₹ 1,20,000 each to three partners.

If an LLP claims a deduction under Section 35AD, the provisions of Alternate Minimum Tax (AMT) under Section 115JC will apply when the adjusted total income exceeds

An association of persons (AOP) has paid tax at the maximum marginal rate. Yash, a member of AOP received ₹ 1 lakh as his share income.

A partnership firm had net profit of ₹ 6,20,000 before deducting interest on capitals to partners @ 1596 of ₹ 1,50,000 and working partners salary of ₹ 1,80,000 (as per deed of partnership) total income of firm chargeable to tax with the –

Salary received by a partner from his partnership firm is considered in his personal assessment as

When a non-domestic company is a member of an AOP and its share of profit is indeterminate, the tax on the total income of the AOP is charged at the

The book profit of a partnership firm is ₹ 1,20,000. The actual remuneration paid to working partners is ₹ 3,54,000.

From a tax point of view, a limited liability partnership (LLP) is treated as

When a partnership firm has total sales of ₹ 90 lakhs, the maximum amount deductible as the salary of working partners on the basis of presumptive income determined u/s 44AD is

When an LLP has a book profit of ₹ 6 lakhs, the maximum amount allowable towards the salary of working partners would be

A non-professional firm M/s Bright has book profits of ₹ 9,36,000.

Under the Income-tax Act, 1961, interest on capital received by a partner from a partnership firm is chargeable under the head

Under the Income-tax Act, 1961, Partnership Firm is chargeable to tax @:

Profit earned during the year by a partnership firm is ₹ 1,40,000.