Which one of the following statements is not correct with reference to the assessment of firms ?

1
All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961.
2
Income of a firm is taxable at a flat rate of 30% without any exemption.
3
Partners’ share in the income of a firm is not chargeable to tax in the hands of partners.
4
Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit.

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