Amended and updated notes on section 188A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Joint and several liability of partners for tax payable by firm.
Chapter XVI (Sections 184 to 189A) of the Income Tax Act 1961 deals with the provisions related to special provisions applicable to firms. Section 188A of IT Act 1961 provides for Joint and several liability of partners for tax payable by firm.
Recently, we have discussed in detail section 188 (Succession of one firm by another firm) of IT Act 1961. Today, we learn the provisions of section 188A of Income-tax Act 1961. The amended provision of section 188A is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 188A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-188A: Joint and several liability of partners for tax payable by firm
Every person who was, during the previous year, a partner of a firm, and the legal representative of any such person who is deceased, shall be jointly and severally liable along with the firm for the amount of tax, penalty or other sum payable by the firm for the assessment year to which such previous year is relevant, and all the provisions of this Act, so far as may be, shall apply to the assessment of such tax or imposition or levy of such penalty or other sum.