still confused.... pls help me about the exact income tax treatment of the amount received by a retired partner by way of his retirement from the firm. pls clarify, whether it comes within CG? if not, under what head should it be treated.
Soumit (Financial Consultant) (34 Points)
01 October 2009still confused.... pls help me about the exact income tax treatment of the amount received by a retired partner by way of his retirement from the firm. pls clarify, whether it comes within CG? if not, under what head should it be treated.
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 01 October 2009
Soumit
Can you please clarify that which amount received by the partner............
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 01 October 2009
Amount means the nature of amount recd.........
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 01 October 2009
It is Rightly said by Sorabh. It all depends on the nature of amount.
Few possibilities are
1) Proporationate remuneration
2) Proportionate share of Goodwill
3) Proportionate share in Profit
as i belive that the Remunaration & Profit both will come under the head business & profession. However the share of porifts will be exempt under the section 10 & Remunration will be taxable.
about the amount of share in the goodwill. I think it is exmpt as the sale of goodwill of business is taxable & not the same of goodwill of the Profession.
Correct me if i am wrong. will be glad to learn new things.
Thanks,
Sunil
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