What is the income tax treatment on amount received on retirement from partnership. Pls help.
4 Replies
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 29 September 2009
in my opinion any amount received from partnership firm on retirement can be shown under the income from other resources... coz person is cease to be a partner.
regards,
ratan
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 29 September 2009
I disagree with ratan. Amount recd would be treated as remuneration or Profit from the Partnership firm as the case may be.
It might be right that at the time of the receipt he might not be the partner but the payment is made to him on account of his contribution as a partner only & hence the amount received would be liable to be taxed in the head business & profession only.
Thanks
sunil
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 30 September 2009
i will request for the reference/source of the answers which are saying that it will be income from other source
Thanks,
sunil
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