Excess compensation recd by retiring partner
This query is : Resolved
20 January 2012
At the time of retirement, partner get excess amt over its capital balance, then what is tax impact to retiring partner ?
Can any Tax planning made on such matter??
PLEASE REPLY URGENTLY
THANKS IN ADVANCE
Can any Tax planning made on such matter??
PLEASE REPLY URGENTLY
THANKS IN ADVANCE
22 January 2012
Excess amount over the capital will be considered as Capital gain.
22 January 2012
where A partner retiring from the firm receives a sum more than the amount standing to his credit(including goodwill) such excess is taxable as capital gain
refer Case law "Bishanlal kanodia Vs.CIT(2002)257 ITR 449(Delhi)"
refer Case law "Bishanlal kanodia Vs.CIT(2002)257 ITR 449(Delhi)"
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