Change in constitution- tfr of cap bal to son
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 April 2012
my client MI is a partnership firm with M,J,H and S are partners.S died on 20.03.2011 and his son P admitted into partnership.
IT return filed for asst year 2011-12.
Partners M.J,H & S contributed 10 lakhs each.
P,deceased partners son did not contribute anything on becoming partner in his fathers place.
credit balance of S deceased partner ie Rs.10 lakhs in the name of s deceased partner.
S deceased partner is survived by 2 sons and wife. Elder son P admitted to partnership.
Now my query is
can we transfer credit bal of Rs.10 lakhs to P by book entry to cap a/c of P.
ARE there any problems?
OR
IS IT BETTER to payback credit bal of Rs.10 lakhs by a/c cheque to wife or sons and then re introduce by P the same Rs.10 lakhs in the firm.
family memmers did not have any objection in transferring Credit bal of Rs.10 lakhs to P neewly admitted partner.
kindly advise best option from income tax angle.
IT return filed for asst year 2011-12.
Partners M.J,H & S contributed 10 lakhs each.
P,deceased partners son did not contribute anything on becoming partner in his fathers place.
credit balance of S deceased partner ie Rs.10 lakhs in the name of s deceased partner.
S deceased partner is survived by 2 sons and wife. Elder son P admitted to partnership.
Now my query is
can we transfer credit bal of Rs.10 lakhs to P by book entry to cap a/c of P.
ARE there any problems?
OR
IS IT BETTER to payback credit bal of Rs.10 lakhs by a/c cheque to wife or sons and then re introduce by P the same Rs.10 lakhs in the firm.
family memmers did not have any objection in transferring Credit bal of Rs.10 lakhs to P neewly admitted partner.
kindly advise best option from income tax angle.
23 April 2012
If you want to transfer the credit balance to the son P of the deceased partner then taken a consent letter from the other family members otherwise transfer 1/3rd share each and take P as a partner and pay interest to other legal heirs.
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