A partnership business is a form of of bisiness when two or more persons are agreed to enter into a contract to conduct a business stating clearly the capital to be invested by each of them, joint controlling of the operation, sharing of profits or losses and the modus operandi through which disputes can be resolved or business can be dissolved afterwards.
A Partnership Firm is not liable to pay any income tax on it's own name. Insted each partner is liable file Income Tax Return and to pay tax individually on profits earned by them from the said business. This is the biggest advantage of forming a partnership business.