Abhay salunkhe (96 Points)
17 January 2023Can capital and current balance of LLP can be withdrawn by partners?
As found the income tax may prohibit the withdrawal.
If it is withdrawable at what rate it will be taxable?
Please help me with this 3 questions
Manish
(CA)
(1167 Points)
Replied 17 January 2023
Can capital and current balance of LLP be withdrawn by partners?
There is no restriction in the law. The LLP agreement will decide this matter.
As found the income tax may prohibit the withdrawal. If it is withdrawable at what rate it will be taxable?
There is no prohibition. It is just a capital receipt. Not specifically taxed.
Abhay salunkhe
(96 Points)
Replied 03 February 2023
I have read somewhere that the current account balance of LLP can't be withdrawn till 3 years from the conversion. We have to wait for 3years for withdrawal of accumulated reserve. I am little bit confused in that. Can you please reconfirm that the 3years will not be an issue.
Manish
(CA)
(1167 Points)
Replied 03 February 2023
Yes, you are correct.
The original query didn't mention about conversion.
Abhay salunkhe
(96 Points)
Replied 03 February 2023
In the beginning i have private limited company which now got converted into LLP, so can i withdraw the current balance from the LLP.
Abhay salunkhe
(96 Points)
Replied 04 August 2023
Hii Manish
Still not clear with answer, can i withdraw capital after conversion. 6month ago my company got converted into LLP. Can i withdraw capital, tomorrow.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
