Amt recd by partner at the time of retirement

This query is : Resolved

Shilpa (Querist)
Follow

12 June 2013 If partner invested Rs. 100 and receives Rs. 120 at time of retirement, what are the tax consequences on the extra amount of Rs. 20

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
Follow

12 June 2013 THE EXTRA INCOME EARNED IS PROFIT FROM PARTNERSHIP AND WILL WE TAXED AS USUAL

Shilpa

Shilpa (Querist)
Follow

12 June 2013 If the same amounts to profit from partnership, then the same will be exempt in the hands of partner u/s. 10(2A)

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
Follow

12 June 2013 YES OBVIOUSLY.

Shilpa

Shilpa (Querist)
Follow

12 June 2013 Thanks a lot

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
Follow

12 June 2013 YOU ARE ALWAYS WELCOME.

Shilpa

Shilpa (Querist)
Follow

13 June 2013 Can u please tell the section of income tax which is in refreence to tax effect for the amount received by partner at the time of retirement, when the firm is not getting dissolved

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
Follow

13 June 2013 please refer the below link for your query..

https://www.taxmann.com/TaxmannFlashes/Articles/flashart30-10-10_2.htm

hope this solves your problem..

Shilpa

Shilpa (Querist)
Follow

14 June 2013 Does the capital contribution made by the partner in firm considered as property for Sec. 2(14) of the income tax act

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now