Liability of registered firm to retain percentage of share of each partner in certain income of firm – Whether arises even before tax is levied and is communicated to partners
Circular : No. 260 [F. No. 385/65/79-IT(B)], dated 31-7-1979.
1. Attention of the Chambers of Commerce is invited to the provision contained in sub-section (4) of section 182 which requires that “a registered firm may retain out of the shares of each partner in the income of the firm a sum not exceeding 30 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