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H JAILANI

H JAILANI (Querist)
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24 November 2011 Partner has invested cash as capital, is there any violation in Income Tax Act?

Tapas Ruparelia

Tapas Ruparelia (Expert)
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25 November 2011 NO violation!

H JAILANI

H JAILANI (Querist)
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29 November 2011 Thanks for your reply , in connection with partner investing cash as capital. Is there any case laws in our favour.

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H JAILANI

H JAILANI (Querist)
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29 November 2011 Thanks for your reply , in connection with partner investing cash as capital. Is there any case laws in our favour.

Tapas Ruparelia

Tapas Ruparelia (Expert)
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29 November 2011 Incometax act disallows payments in cash above rs 20000. Here disallowance is with respect to EXPENDITURE.

Investing capital in a firm in capacity of partner is not an expense. Therefore question of dis-allowance does not arise.

Thus there is no violation and a partner can infuse capital in cash!
Best regards

H JAILANI

H JAILANI (Querist)
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30 November 2011 Thanks for the information