Section 324
Section 324: charge of tax in the case of a firm
Section 324 is a short charging provision: where a firm is assessable as a firm (as opposed to some other status), tax on its total income is charged at the rate specified in the relevant Central Act (typically the annual Finance Act) for that tax year.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
The rule
In the case of a firm which is assessable as a firm, tax is charged on its total income at the rate specified in any Central Act for the relevant tax year.
Frequently asked questions
What tax rate does a firm pay under Section 324?
The rate specified in the relevant Central Act (such as the annual Finance Act) for that tax year - Section 324 itself does not fix a numeric rate, it points to whatever rate the Central Act prescribes for firms in that year.
Does Section 324 apply to every firm?
It applies to a firm which is assessable as a firm - see sections 325 and 326 for the conditions a firm must meet to be assessed in that capacity.
Related sections
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Get help with partnership firm tax filingLast updated 9 September 2026