Partnership deed in case of death of partner

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deepika dhakad (Querist)
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01 September 2012 In a firm there were 3 partners out of which one partner has died. Now remaining partners want to continue business in partnership and want to add a new partner .

Plz provide me format/ draft of partnership deed in this situation specially in case of death of a partner.

thanks

V K Bajaj

V K Bajaj (Expert)
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02 September 2012 First there would be a DISSOLUTION DEED effective the date of death of a Partner. And the Profit & Loss and Balance Sheet shall be drawn on date of death. Then on next day a new Partnership Deed will be signed by old and/or new partners. A new set of books will be taken from this date. However, for the income tax (of Partnership) and TDS purposes full year will be treated as continued one.

The Capital (including share of profit and loss up to his date of death) shall be taken/transferred to his legal heir as payable.

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