36.—(1) Where a trade, business, profession or vocation is carried on by 2 or more persons jointly —
(a)
the income of any partner from the partnership for any period shall be deemed to be the share to which he was entitled during that period in the income of the partnership, such income being ascertained in accordance with the provisions of this Act, and shall be included in the return of income to be made by such partner under the provisions of this Act; and
(b)
the statutory income of any partner from the partnership shall be computed in accordance with section 35 by treating his share of the divisible income of the partnership as though it were income of a trade, business, profession or vocation carried on or exercised by him.
(1A) Sections 13H, 13S, 19B, 43Y and 43ZA shall apply to a partnership as they apply to a company with such modifications and exceptions as may be prescribed by the Minister by regulations.
[34/2008 wef 01/04/2008]
(1B) Sections 14E and 19C shall, notwithstanding anything in those sections, apply to a partnership with such modifications and exceptions as may be prescribed by the Minister by regulations.
[34/2008 wef 01/04/2008]
(1C) Regulations under subsections (1A) and (1B) may make provision ––
(a)
for the manner in which a concessionary rate of tax under sections 13H, 43Y and 43ZA may be accorded to a partner of a partnership being an individual;
(b)
in a case where any deduction, writing-down allowance, exemption or concessionary rate of tax ought not to have been allowed to a partner of a partnership due to non-compliance with any condition imposed on the partnership, for the recovery from the partner —
(i)
if the partner is a company, of the amount of tax which would otherwise have been payable; or
(ii)
if the partner is an individual, of an amount to be computed in the prescribed manner;
(c)
for the recovery of the amount referred to in paragraph (b) by deeming a specified amount as the income of the partner for the year of assessment in which the Comptroller discovers the non-compliance referred to in that paragraph; and
(d)
generally to give effect to or for carrying out the purposes of those sections as they apply to a partnership.
[34/2008 wef 01/04/2008]
(2) This section shall not be deemed to apply to any trade, business, profession or vocation carried on by a Hindu joint family.