Firm income determination before deductions clarifies undisclosed firm income not taxable in partners' hands on allocation. The amendment treats a firm's returned and assessed income for previous years within the block period as income determined before allowing deductions for ... Summary
Firm income determination before deductions clarifies undisclosed firm income not taxable in partners' hands on allocation.
The amendment treats a firm's returned and assessed income for previous years within the block period as income determined before allowing deductions for salary, interest, commission, bonus or other remuneration, effective from 1 July 1995, and provides that any undisclosed income of the firm so determined shall not be chargeable to tax in the hands of the partners whether on allocation or on account of enhancement.
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