Comment on Account Opening Process - Corporate,Partnership Firm, & HUF

Akshay.A commented on 05 Sep 2017, 08:38 AM

Opening an LLP or a partnership account will be subject to taxation as per the Partnership act. Income tax is levied at a flat rate of 30% and a surcharge of 10% if Total Income exceeds 1Crore and education cess+ secondary & higher education cess @ 3% on Income-tax. In the case of a sale of any shares or mutual funds the capital gains are taxable under Section 111A at a flat rate of 15% in case the period of holding is lesser than 1 year and in case the period of holding is more than 1 year, the income is exempted from taxation under Section 10(38).
Whereas, it’s better to open an NRI account since only the income accrued in India is taxable under the income-tax slabs. There is a capital gains tax on the sale of securities at 15% if sold within 1 year and is nil is sold after holding for a period of more than 1 year. You can refer this blog for more details: https://cleartax.in/s/income-tax-for-nri

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