CAF-2 · Chapter 12 · Question 15 of 15
AOP 'X' has two partners, Ali and Bilal. AOP 'X' derived an income of Rs. 1,000,000 which strictly falls under the Final Tax Regime (FTR). How will this FTR income affect the individual tax returns of Ali and Bilal?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) The FTR income will not be included in the taxable income of the members at all, not even for rate purposes.
Explanation
If an AOP has any income that falls under the Final Tax Regime (FTR), the members' share from such income shall not be added to the taxable income of the member. Income falling under FTR is not to be included in any taxable income calculation, meaning it is excluded even for rate purposes.
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