Special Provisions

regarding Assessment of
Firm

Group: 9
 Special Provisions
applicable to Firms
• Rate of Tax in the case of Firm – Sec. 167A
• Assessment as a firm – Sec. 184
 The partnership is evidenced by an instrument in writing;
 The shares of each partner are specified in such instrument;
 A copy of partnership instrument is certified by all the partners is
enclosed with a return of income in respect of the first
assessment year for which the status of firm is claimed.
 Cont…
• Assessment when Sec. 184 is not complied with- Sec. 185
• Change in Constitution- Sec. 187
 If one or more partners cease to be partners or one or more new
partners are admitted, in such circumstances that one or more of the
persons who were partners of the firm before the change, continue as a
partner(s) of the change. However change due to death of a partner is
not considered as a change in the constitution of the firm;
 All the partners are continuing, but there is a change in the profit
sharing ratio of some partners or all the partners.
 Cont…

• Succession of a firm- Sec. 188

• Joint and several liabilities of partners for the tax payable by the firm-
Sec. 188A

• Dissolution of firm (or) discontinuance of business or profession-

Sec.189

• Other provisions
Thank You