The Income Tax Act additionally recognizes firm as a separate legal entity. A member cannot claim any possession rights over the corporate both single-handedly or jointly. The properties of the corporate can only be used for the event, betterment, maintenance, and welfare of the corporate and can’t be used for private advantages of the shareholders. A firm is perceived to be a definite authorized entity and one that does not depend upon its members. The money credited by the creditors of the company may be recovered solely from the company and the properties owned by the company. It has to act via a board of shareholders elected or chosen by the members of the company.
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A company is outlined as a bunch of people that contributes money or the value of cash to a typical stock to make use of it in some trade … Read More