Death of a partner with only 2 partners

This query is : Resolved

pooja (Querist)
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15 July 2023 There are 2 partners in a firm , one of the partner died so whether it becomes proprietorship concern now but pan is in the name of the firm, how to keep the same firm name going, does the asset becomes the asset of the existing partner, not able to understand how to go about it..
Thanks you

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 July 2023 it is settled law that ordinarily on the death of a partner, the partnership firm is automatically dissolved vide section 42 of the Indian Partnership Act.

pooja

pooja (Querist)
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16 July 2023 Thank u so much Sir, u r always a great help then whether the pan of the firm will be non existent or can a new partner be added to the same firm

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 July 2023 Yes, the firm gets automatically dissolved and PAN has to be surrendered.
Existing partner has to complete the formalities of any tax liability till the time of dissolution.
He can form second partnership firm may be under same banner, if permitted, may transfer his original assets to new firm and apply for new PAN no.

pooja

pooja (Querist)
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17 July 2023 Thanks a ton Sir..great help

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2023 You are welcome.

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