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

DEEPAK MAHESHWARI commented on 26 Dec 2014, 12:08 PM

Ok i Got it,

I thought if the turnover is more in an individual trading acount, it might be a cause of concern from coming in the radar of the IT guys.

So thought better to open a LLP and transfer the liablity from an indiviual to other legal entity .

And may there are other advantages too when you are having a considerable account size.

1. Business expenses can be a deductibe from the profits made which eventually reduces the tax liability

on the other hand , in individual accounts one has to pay on the whole profit and one cannot deduct expenses from it .

am i right ?

I personally believe every professsional traded should manage his or others funds in a new entity other than it being an individual.

Your comments will be appreciated

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