06 May 2016
A person has given loan to a proprietary firm during 2014-2015. On 01.03.2015 the person creates partnership firm with the existing proprietor. Can the loan be converted to the persons capital contribution in the firm.
06 May 2016
The person is given loan to proprietorship firm which is not a part of new created partnership firm. so both are different from each other. The investment was made in proprietorship firm not in partnership firm so for partnership firm each of partners need to contribute their share of capital and that loan relates to proprietorship firm as liability of firm.
09 May 2016
you have to pay the loan first after that you have to make partnership. due to loan taking in prop. capacity and now make partnership. so for income tax its better to repayment of loan first.
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