01 August 2022
We have a firm which has earned a profit of Rs.9 lakhs last year (fy 21-22) One of partner has retired and a new partner joined the firm in feb last year (feb'22) . Now when we pay retiring partner's capital rs.3 lakhs + rs.3 lakh profit and int on capital rs.45000. How much income tax liability retiring partner will have ?
Will the retiring partner have to pay tax on entire Rs.645000 ? Asking this question as someone told me that retiring partner does not have to pay income tax on any amount he gets on retirement from firm. Is this true ?
CAclubindia
