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Indian Partnership Act, 1932
A partnership is the relationship between persons who have agreed to
share the profits of a business carried on by all or any of them acting
or all. In India it is governed by the Indian Partnership Act, 1932,
which extends to the whole of India except the State of Jammu and
Kashmir. It came into force on 1st October 1932.
A partnership firm is not a legal entity apart from the partners
constituting it. It has limited identity for the purpose of tax law as
per section 4 of the Partnership Act of 1932.
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