Capital Gain - Urgent- Please help

This query is : Resolved

(Querist)
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10 August 2010 I am a partner in a firm which has 4 partners.My capital account balance in the firm is Rs 5 lakhs.

If i retire from the partnership, getting an compensation of Rs 8 lakhs, whether the balance 3 lakhs will be taxable??

Please help- Very urgent

CA Punit

CA Punit (Expert)
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10 August 2010 Amount received by retiring partner in respect of his share in Partnership firm including Goodwill is not assessable as Capital Gains.
Case - Mohanbai Padmabhai 165 ITR 166 (SC)

The surplus of Rs. 3 Lacs is not chargable to tax as it is in nature of Goodwill, which including the other sums is not taxable in view of above judgement.