Section - 182

[OMITTED BY THE FINANCE ACT, 1992, W.E.F. 1-4-1993]

Chapter XVI

Special Provisions applicable to firms

60 [A.—Assessment of firms]

Assessment of registered firms.

182. 61 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

61. Prior to omission, section 182, as omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and later reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under:

"*182. Assessment of registered firms.—(1) Notwithstanding anything contained in sections 143 and 144 and subject to the provisions of sub-section(3), in the case of a registered firm, after assessing the total income income of the firm,—

( i) the income-tax payable by the firm itself shall determined; and

( ii) the share of each partner in the income of the firm shall be included in his total income and assessed to tax accordingly.

(2) If such share of any partner is a loss it shall be set off against his other income or carried forward and set off in accordance with the provisions of sections 70 to 75.

(3) When any of the partners of a registered firm is a non-resident, the tax on his share in the income of the firm shall be assessed on the firm at the rate or rates which would be applicable if it were assessed on him personally, and the tax so assessed shall be paid by the firm.

(4) A registered firm may retain out of the share of each partner in the income of the firm a sum not exceeding thirty per cent thereof until such time as the tax which may be levied on the partner in respect of that share is paid by him and where the tax so levied cannot be recovered from the partner, whether wholly or in part, the firm shall be liable to pay the tax, to the extent of the amount retained or could have been so retained."

* See also Circular No. 260, dated 31-7-1979. For details, see Taxmann’s’ Master Guide to Income-tax Act.

Section 182

[OMITTED BY THE FINANCE ACT, 1992, W.E.F. 1-4-1993]

Footnotes