Income tax liability

[HIREiN]

@HIREiN

@HIREiN

is plain paper signed by both the parties sufficient ?

@HIREiN

anage trading account to my friend on 50 % profit sharing basis ; the remuneration profit share money paid by my friend to me and received by me . should i show it in my books of account as salary or commission or brokerage or feesor something else ?

@Sakshi_Jain @Diti_Savalia

@HIREiN

is plain paper signed by both the parties sufficient ?

@HIREiN

anage trading account to my friend on 50 % profit sharing basis ; the remuneration profit share money paid by my friend to me and received by me . should i show it in my books of account as salary or commission or brokerage or feesor something else ?

@Sakshi_Jain @Diti_Savalia

[Diti_Savalia]

Again, it depends on the nature of the agreement!

[Diti_Savalia]

Hey @HIREiN,

You should report it in the same way your friend records it i.e. if he is showing as an expense, you should report it as income under the same head.

Hope this helps!

[cat_exotica]

You should report the amount exactly the way your friend recorded it. If they’ve shown it as an expense, you should declare it income under the same head.

[Hozho_Groups]

Income tax liability refers to the amount an individual or business owes to the government based on earnings, deductions, and applicable rates.