Share of partnership firm

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Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2017 Hello Sir,

Suppose there are 10 partners in a Partnership firm.
Two of them are me and my uncle having equal share of Profit in the firm.
Now my uncle wants to retire from partnership firm voluntarily. And he wish to transfer his share to me.
So, what is the procedure to transfer his share in my name.
Whether we would have to alter partnership deed, or is there any simple way to transfer his share in my name.

Please help me.

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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26 November 2017 Kindly prepare a supplementary partnership deed

RAJA P M

RAJA P M (Expert)
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26 November 2017 Yes... You ll prepare Retirement Deed and New Partnership Deed or Retirement cum New Partnership Deed... Also prepare the share transfer deed. It's important.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2017 thank you sir,
does share transfer deed attracts any kind of tax for me ?

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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26 November 2017 If your uncle comes under the defination of relative as per IT Act than no tax will attract But If it is not covered under the defination of relative than Tax will be attracted

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2017 Uncle is younger brother of my father.
I think it does not come under the definition of relative under income tax.
so, what would be tax treatment sir ?
gift tax or else ?

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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27 November 2017 As per me it is not covered under relative, there will be tax liability if gift exceeds Rs 50000

RAJA P M

RAJA P M (Expert)
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27 November 2017 Why not...?! Father's Brother / sister is covered under relative definition....

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Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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27 November 2017 Yes Mr. Raja PM Sir are correct "brother or sister of either of the parents of the individual;"

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Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2017 okay... thank u sir..
it means there would not be any kind of tax liability....
i will have to just prepare gift deed...
share transfer deed..
and will have to alter original partnership deed, and attach with above mentioned 2 documents...

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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27 November 2017 Yes you are correct. Once again thanks Raja PM Ji for correcting me

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RAJA P M

RAJA P M (Expert)
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28 November 2017 My Dear Brother., You are most welcome... @ Anonymous., You ll keep the 1st deed and prepare another partnership cum retirement deed.... Separately prepare gift deed and consult your CA/Consultant or nearest Consultant or CA or Advocates..... GOOD LUCK.....

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Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2017 thanks a lot both of u sir...
thank you very much...

RAJA P M

RAJA P M (Expert)
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28 November 2017 You are most welcome Dear...

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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29 November 2017 Most Welcome Mr./Mrs./Miss Anonymous

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