Liability of the registered firms to retain share of profits of the partners for payment of taxes--Section 182(4) of the Income-tax Act, 1961

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....ted 31/7/1979 To             All Chambers of Commerce. Sir, Subject : Liability of the registered firms to retain share of profits of the partners for payment of taxes--Section 182(4) of the Income-tax Act, 1961. Attention of the Chambers of Commerce is invited to the provision contained in sub-section (4) of section 182 of the ....

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.... been complied with by the registered firms presumably under the misconception that the amounts have to be retained only after the receipt of notice of tax demanded from the partners of the firm. As is clear from sub-section (4) of section 182 the legal liability to retain the amount equal to 30% of the share of each partner in the income of the firm arises even before the tax is levied by the Inc....