« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  SBI urges ICAI to defer accounting code... SBT unveils tax saver term deposit scheme... » Finmin, MCA differ on taxation policy for LLPs August, 17th 2006 Company affairs ministry has pitched for LLPs to be at par with partnership firms for taxation; MoF wants them taxed as corporates The finance and company affairs ministries are at variance over formulating the taxation policy for limited liability partnership (LLP) firms. While the MCA has pitched for LLPs to be treated at par with partnership firms for purposes of income tax and capital gains tax, the MoF wants them to be taxed as corporates. Constituents of a partnership firm are individually liable to income tax on their share of the profits of the trade or profession that the firm carries out. This is consequent to the treatment of the property of the firm as that of the partners, instead of the firms. Similarly, the assets of the firm is dubbed as those of the partners, to compute the capital gains tax. As for a corporate entity, the profits and assets are reckoned to be that of the entity and taxed accordingly. Official sources said the two ministries have already corresponded between them on their disagreement. The company affairs ministry wanted the issue to be resolved before it finalized the draft LLP Bill, they added. Waiting to explode MCA notion Company affairs ministry wants relevant tax policies enshrined in the LLP Act, instead of the I-T Act saying it would ensure a policy conducive for growth MoF take Finmin feels the model would infringe upon Article 77 of the Constitution dealing with the ministry's freedom to determine tax rates The sources said that the tax issues pertaining to LLP might create a row before being settled, as the MCA would also pitch hard for the relevant tax policies to be enshrined in the LLP Act, instead of the income-tax Act. This, the ministry believes, would ensure a stable policy conducive for growth. The finance ministry, however, is disinclined to accept the model which, it feels, would infringe upon Article 77 of the Constitution dealing with allocation of businesses to ministries and the ministrys freedom to determine tax rates. The company affairs ministry envisages LLP to be a new legal entity which has the twin advantages of the organisational flexibility and tax status of a partnership firm even as the partners are unburdened from unlimited liability. The idea is that the services sector would get a growth impetus. Each LLP partner would have a liability, disengaged from the consequences of others faults, negligence even as the firm would have perpetual succession.