Question

For the purpose of income-tax, a partnership firm ____________________.

• A. Can be assessed as an entity distinct and separate from its partners
• B. Cannot be assessed as an entity separate and distinct from its partners
• C. Can be assessed as an entity distinct and separate from its partners only with the permission of the court
• D. Can be assessed as an entity distinct and separate from its partners only if all the partners agree for the same

Answer 1

The correct option is A Can be assessed as an entity distinct and separate from its partners

In the eye of tax law Partnership firm is different than its partner. It has separate PAN number under which it assessed.