Formation Management and Taxation of Partnership Firms and Partners

Authored by Ram Dutt Sharma, this 2nd Edition (2023) provides an in-depth and practical analysis of the law relating to the formation, administration, and taxation of partnership firms and partners in India. It is meticulously updated in accordance with the Partnership Act, 1932 and the Income Tax Act, 1961, making it an essential reference for practitioners, academicians, and students.

The book comprehensively explains the legal and procedural framework for establishing and managing a partnership firm, including rights, duties, and liabilities of partners. It also covers the complete taxation regime applicable to partnership firms and their partners, integrating statutory provisions with judicial interpretations and departmental guidelines.

The content covers:

• Concept, nature, and characteristics of partnership

• Formation and registration of partnership firms under the Partnership Act, 1932

• Rights, duties, and obligations of partners

• Dissolution and reconstitution of firms

• Taxation provisions applicable to partnership firms under the Income Tax Act, 1961

• Computation of taxable income and filing of returns for partnership firms

• Remuneration to partners – allowable limits and tax treatment

• Interest on capital and drawings – accounting and taxation aspects

• Assessment procedures and compliance requirements for firms and partners

• Set-off and carry forward of losses

• Recent amendments and latest case laws relevant to partnership taxation

• Practical illustrations for clarity in computation and compliance

This edition is particularly suitable for:

• Chartered accountants, tax practitioners, and advocates handling partnership matters

• Business owners and partners seeking clarity on legal and tax implications

• Students of law, commerce, and taxation preparing for professional exams

• Academicians and researchers focusing on business law and taxation

With its blend of legal interpretation, procedural guidance, and practical examples, this edition stands as a reliable resource for understanding and managing the complexities of partnership law and taxation in India.