13 May 2008
A Firm is having 2 partners. Their profit sharing ration is 50:50.One of the partner wants to gift its entire partnership capital to the partner whois her son.
QUERY:Whether it is possible? If yes the entry can be done by a JV in books and preparing gift deed or we should give it by cheque. A PFAS of 2 partners in whioch one parner having zero capital balance will still be PFAS or it wil be a proprietory in eyes of law
13 May 2008
it is possible to the retiring partner because u/s 56[2][VI] of the income tax act any gift given to the relatives is exempt from tax so in your case a lady give her capital to her son & there is relation of the both you will make gift deed to you son the lady give only her capital to his son so her capital is nil still she is a partner in the firm if she retired from partnership then dissolution deed should be made then her son will be propriter of the said firm
CAclubindia
