R.Vijayakumar (Article Assistant) (31 Points)
29 June 2011
Dear Sir,
In the case of Partnership firm as on 31-03-2011 ,on eof the partner was retired and the retiring partner has received his share in cash exceeding Rs. 20000/-. on 20-04-2011.
I want to know that whether continuing partnership firm can paid cash to retiring partner - whether section 269T is attracted ?
Advance Thanks...
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 29 June 2011
Yes 269T is applicable
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 30 June 2011
Deepak Sir,
269T will not be applicable to the above case in my opinion as this section is applicable to repayments of loans...
Further clarification of your answer from your side will be appreciated
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 30 June 2011
In the given case the partner retired on 30.03.2011 and he got his share on 24.04.11. It means the amount is converted into loan as on 31.03.2011 through passinmg of book entry, as the same has not been paid as on that date. On 24.04.11, the loan amount has been repaid, the firm should have been paid through cheque.
In my opinion, if cash has been paid exceeeding 20,000.00, it will be covered under section 269T.
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
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