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Commerce Short Question | Gkseries

Q.

Which one of the following statements is not correct with reference to the assessment of firms ?

[A] All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961.
[B] Income of a firm is taxable at a flat rate of 30% without any exemption
[C] Partners’ share in the income of a firm is not chargeable to tax in the hands of partners.
[D] Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit
Answer & Explanation

Answer: All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961.

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