Retirement of a partner
This query is : Resolved
23 July 2012
Three partners were carrying on a partnership business for the past 3 years. One of the partner retires and is paid a lumpsum amount of Rs. 25 lacs. His capital balance as on the date of retirement was Rs. 10 lacs only. The other two partenrs continue the partnership business.
What is the tax implication for the firm and the retiring partner.
Thanks in advance
P. Srinivas
What is the tax implication for the firm and the retiring partner.
Thanks in advance
P. Srinivas
Guest
Guest
(Expert)
24 July 2012
but why Rs. 15 lacs has been in extra
24 July 2012
The extra payment is towards relinquishment of his rights over the partnership business. My question whether that extra amount of Rs. 15 lacs is taxable
08 October 2021
The excess amount will not be taxable, as it is considered as capital receipt.
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