11 October 2022
Respected Sir/ Madam Please Guide Partner of a firm having a Capital of Rs. 3,00,000 in the Firm resigns from the Firm. Full amount of his Capital in the Firm is paid to him vide cheque from the bank account of the Partnership Firm. The Partnership firm will be converted to a Proprietorship firm now onwards. What will be the tax implications. on the Retiring Partner pertaining to the transfer of Rs. 3,00,000. Will It be Taxed Under which head of Income will it be taxed
Also is the above arrangement for resignation from a partnership firm allowed. Please guide Thanks
CAclubindia
