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

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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 Income-tax Act, 1961, which requires that "a registered firm may retain out of the shares of each partner in the income ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fter 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 Income-tax Officer and is communicated to the partners. In other words, the amount has to be retained as a sort of security b....