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Cash withdrawal

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This query is : Resolved

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A managing partner withdrew Rs 10 Lakhs in cash from his firm, recorded as drawings, to purchase land. The query seeks advice on tax liability for both the withdrawal and the land purchase. The provided advice states there is no tax liability for either transaction.

Jomon P B

Jomon P B (Querist)
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06 January 2020 Mr. A is a managing partner of a firm. He withdrew Rs 10 Lakhs as cash from the firm. In the books of accounts of the firm the transaction of partner has been accounted in the Ledger "drawings". Partner purchased a Land with that money. Kindly advice with regard to the tax liability on cash withdrawal and land purchase.

swasti

swasti (Expert)
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08 January 2020 No tax liability for withdrawl or for land purchase.

Jomon P B

Jomon P B (Querist)
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10 January 2020 thank you...........madam

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