Excess compensation recd by retiring partner

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kalpesh subhash shah (Querist)
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20 January 2012 At the time of retirement, partner get excess amt over its capital balance, then what is tax impact to retiring partner ?

Can any Tax planning made on such matter??

PLEASE REPLY URGENTLY
THANKS IN ADVANCE

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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22 January 2012 Excess amount over the capital will be considered as Capital gain.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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22 January 2012 where A partner retiring from the firm receives a sum more than the amount standing to his credit(including goodwill) such excess is taxable as capital gain
refer Case law "Bishanlal kanodia Vs.CIT(2002)257 ITR 449(Delhi)"

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