Treatment of income & under which source
This query is : Resolved
CA Sanjay Baheti
(Querist)
11 October 2011
A partnership firm is reconstituted by way of Retiring One partner.The Retiring Partner is also receiving certain Amount from the Firm in addtion to Repayment of Capital Contribution towards either appreciation in value of Firm's Assets or Goodwill of the Firm.Say Example Rs.100000/- in addtion to Captial Contribution of Rs.525128/ as repayment.
Now query is How to treat the said amount in the Hands of Both Firm & Retiring Partner so far eaxpenses/Incomes are concerned.
Now query is How to treat the said amount in the Hands of Both Firm & Retiring Partner so far eaxpenses/Incomes are concerned.
CA Hardik Bunha
(Expert)
11 October 2011
For firm it is not a revenue exp.
for retiring partner PROFIT AND GAINS FROM BUSINESS AND PROFESSION U/S 28
for retiring partner PROFIT AND GAINS FROM BUSINESS AND PROFESSION U/S 28
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