If an employee is due for retirement shortly, it is better to go for commutation of pension as per the above stated rules. Because pension (un-commuted) received by all employees (govt. and non govt.) during their life time isincluded in the salary income and chargeable to tax.
Q.3 Explain the essential conditions to be satisfied by a firm to be assessed asfirm under Section 184.Answer:
Essential conditions to be satisfied by a firm to be assessed as firm (Section184)
In the first assessment year:
The firm will be assessed as a firm, also known as„Firm Assessed as Such
(FAAS) if the following conditions are satisfied:(a) Partnership is evidenced by an instrument i.e. there is a written document giving theterms of partnership.(b) The individual share of the partners is specified in that instrument.(c) Certified copy of partnership deed must be filed: A certified copy of the saidinstrument of partnership shall accompany the return of income in respect of theassessment year for which the assessment as a firm is first sought.Where certified copy is not filed with the return there is no provision for condonation of delay. However where the return itself is filed late then there is no problem if thecertified copy is filed along with such return as the condition that it shall accompany thereturn of income is satisfied.Further Delhi ITAT in the case of
Ishar Dass Sahini & Sons v CIT
held that whereuncertified Photostat copy of the instrument of partnership is submitted along with thereturn of income and the certified copy is produced at the time of assessment, it willsatisfy this condition.2.
In the subsequent assessment years:
If the above three conditions are satisfiedthe firm will be assessed as such (FAAS) in the first assessment year. Once the firm isassessed as firm for any assessment year, it shall be assessed in the same capacity for every subsequent year if there is no change in the constitution of the firm or the share of the partners.