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Posted On : 26 January 2026
Seeking expert opinion on holding vs exit of parternship-owned warehouse business
Hello,I am seeking an expert opinion on whether it makes financial sense to continue holding or exit a minority stake in a warehouse business. Key details below:
- Business: Warehouse / cold storage (partnership firm)
- Ownership: 12.5% minority stake
- Project start: Feb 2022
- Private capital invested: ₹1 Cr (borrowed at 18% p.a.)
- No private repayment so far due to bank loan priority
- Effective private debt today: ~₹1.72 Cr
- Expected private debt when repayment starts (~2 years): ~₹2.05+ Cr
Best operating year (FY 2024–25):
- Revenue: ~₹2.05 Cr
- Operating surplus before loans: ~₹1.26 Cr
- Bank loan repayment: ~₹1.0 Cr/year
- Free cash (entire business): ~₹25–27 L/year
- Cash to us (12.5%): ~₹3–4 L/year
- Expected post–bank-loan cash to us: ~₹15–16 L/year
Additional context
- Major commodity stored: mirchi
- Revenue depends heavily on rotation; low prices have capped growth
- Land value has appreciated from ~₹1.0 Cr to ~₹1.7 Cr
Questions
1. Does holding make sense long term given 18% private capital and minority ownership?
2. Since this is a partnership firm, can any business loss or depreciation be used to offset personal salary income?
3. Does refinancing the 18% loan make sense? If so, what realistic interest rates are currently achievable (secured / LAP / business loan)?
4. Is an exit valuation of ~₹1.8–2.0 Cr reasonable for a strategic buyer increasing control?
Looking for a candid, numbers-based opinion.
Happy to share detailed workings if required.
Posted On : 26 January 2026
COMPLIANCE FOR HUF AFTER DEATH OF KARTA
Respected Sir/MadamBankers asked for updated details after demise of Karta for periodic kyc
they sent a message that you have to update the same on income tax portal and apply for new pan card after update and submit the new document with fresh kyc of new karta
What are the compliances being required to be updated on Income Tax Portal.
Please reply
Regards
Tribhuvan
Posted On : 26 January 2026
In Reply To :
Tax Liability on Trading Account in Name of Person with Disability (Autism) Operated by Guardian
- Risk: AO may raise query on guardian operation.- Mitigation: Attach medical certificate + guardian declaration.
- Risk: Clubbing confusion.
- Mitigation: Cite Section 160 (representative assessee) and Section 64 (not applicable to majors).
- Recommendation: Always file separate ITR in PwD’s name, claim 80U deduction, and maintain transparent records.
Posted On : 26 January 2026
In Reply To :
Tax Liability on Trading Account in Name of Person with Disability (Autism) Operated by Guardian
File a separate ITR in your son’s name using his PAN. You will sign as guardian in the verification section.Maintain clear documentation:
Guardian appointment proof (court order or declaration under RPwD Act).
SEBI/DP account opening forms showing guardian authority.
Medical certificate of disability (for 80U claim).
Keep segregated bank accounts for his trading income to avoid disputes.
Posted On : 26 January 2026
In Reply To :
Tax Liability on Trading Account in Name of Person with Disability (Autism) Operated by Guardian
- Section 80U: Your son can claim a flat deduction of ₹75,000 (for disability ≥40%) or ₹1,25,000 (for severe disability ≥80%). Autism Spectrum Disorder is recognized under the RPwD Act, so this deduction applies.- Section 80DD: As guardian, if you incur expenses for his medical treatment or deposit in approved schemes, you can claim deduction in your own return.
- Reporting: No special exemption on capital gains/dividends for PwD. Normal tax rules apply. But you must disclose guardian operation in the ITR (verification section allows guardian signature).
SEBI-compliant guardian operation is sufficient; no separate reporting requirement under Income-tax Act beyond standard disclosure.
Posted On : 26 January 2026
In Reply To :
Tax Liability on Trading Account in Name of Person with Disability (Autism) Operated by Guardian
No clubbing provisions apply here. Clubbing under Section 64 applies to minor children or spouse in specific cases. Since your son is a major, his income is assessed separately.Even though he is of unsound mind, the Act treats him as an assessee, with guardian filing on his behalf.
Posted On : 26 January 2026
In Reply To :
Tax Liability on Trading Account in Name of Person with Disability (Autism) Operated by Guardian
Tax liability attaches to the PAN holder. Since the Demat/Trading account will be in your son’s name, all income (capital gains, dividends, interest) is legally his.As guardian, you act as a representative assessee under Section 160 of the Income-tax Act. This means you file and comply on his behalf, but liability is assessed in his name.
You are not personally liable for tax on such income unless you intermingle funds or misreport.
Posted On : 26 January 2026
In Reply To :
Tax Liability on Trading Account in Name of Person with Disability (Autism) Operated by Guardian
Income from a Demat/Trading account opened in the name of your son (PwD) will be taxable in his name only, not clubbed with yours. As guardian, you are responsible for operating the account and filing his ITR, but the legal liability for tax rests with the PwD’s PAN. Filing a separate ITR in his name is both mandatory and advisable, with guardian signing on his behalf.
Posted On : 26 January 2026
In Reply To :
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Posted On : 26 January 2026
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