Dear Sir,
Please suggest me wrt to the following issues:
1. A unlisted public company becomes a partner in LLP and having profit sharing ration is more than 50%,
As profit of LLP is taxable in the hand of LLP and not in the hand of partners so in the case if a unlisted public company is partner, WHAT WOULD BE TREATMENT OF EXEMPTED PROFIT RECEIVED BY SUCH COMPANY AS PER RULE 8D OF INCOME TAX?
Tax Treatment of Exempt Income for Unlisted Companies in LLPs: Section 10(2A) and Rule 8D Explained A query was raised regarding the tax treatment under Rule 8D of the Income Tax Act when an unlisted public company is a partner in an LLP with a profit-sharing ratio exceeding 50%. Since the LLP's profits are taxed at the LLP level, the question concerned the treatment of exempted profits received by the company. The response clarified that income from the firm's share is exempt under section 10(2A), and under section 14A with Rule 8D, any expenditure incurred on this exempt income is not deductible from the company's taxable income. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
