Registration of partnership is ________. A. optional under Indian partnership act B. compulsory under the Indian partnership act C. compulsory under the income tax act D. compulsory under Indian contract act

The correct answer is: A. optional under Indian partnership act

A partnership is an association of two or more persons to

carry on a business for profit. The Indian Partnership Act, 1932, governs partnerships in India. Under the Act, registration of a partnership is optional. However, there are certain benefits that accrue to a registered partnership, such as the right to sue and be sued in the name of the partnership, the right to hold property in the name of the partnership, and the right to file a partnership return of income.

Option B is incorrect because the Indian Partnership Act does not make registration of a partnership compulsory.

Option C is incorrect because the Income Tax Act does not make registration of a partnership compulsory. However, a registered partnership is required to file a partnership return of income.

Option D is incorrect because the Indian Contract Act does not deal with partnerships.