Partner is working as employee and turning into partner in our firm
KHUMESH
(Querist) 25 November 2013
This query is : Resolved
Dear Sir,
My friend is working in Private limited company and is tax payer and having his personal PAN . He wants to contribute 50 % amount as fund for business and enter into partnership. So by forming partnership deed we can include him but He wants to continue his service . Can it be possible? . In partnership deed he will have about 40 % profit sharing as per his contribution. We will also take our TIN number in name of firm , will it reflect in Income tax or how will his income as earned from service and business can be clubbed ?
Regards,
ajay sethi
(Expert) 25 November 2013
well your friend terms of employment will bar him from running any other business or working in another organisation .
ask your friend to choose . as far as income tax queries are concerned discuss it with your CA
Rajendra K Goyal
(Expert) 25 November 2013
Better your friend should get clearance from his employer in writing before entering into such sleeping partnership.
Vidhi Joshi
(Expert) 27 November 2013
agree with Mr. Rajendra.
