Payment to retiring partner

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ARJUN CHARAN SAHOO (Querist)
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26 June 2016 Hi Sir,

I have made payment of Rs.7,00,000/- to a retiring partner of my Firm. I have prepared and notarised the retirement deed. However, Shall I need a settlement letter for the payment ? If so, what should be the process, shall I take the Money receipt of Rs.7,00,000/- Lakh on plain paper or use Rs.1/- Bond paper or a stam paper will require to take the signature of the retiring partner.

Kaushik Joshi

Kaushik Joshi (Expert)
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26 June 2016 Dear Arjun, Since you are going to pay by cheque or any bank mode, you do not require any proof. However if your situation demands that you take it, I'd suggest you to take it on the company letter head stating the receipt of money by partner on his retirement. take his acknowledgement on it.