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Capital introduced by partner

MIDHUN E (ACCOUNTANT) (61 Points)

02 May 2018

if the partners introduced capital above 2 lakh by cash is permissible in partnership

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Rahul Prajapati (Student) (2282 Points)
Replied 02 May 2018

Midhun G,

Yes as Partnership Firm is included in Definition of Person under the Income Tax Act,

Any withdrawal of capital in Cash by a Partner of Rs 2 Lakhs or more or any Capital Introduced or Addition in Capital in Cash amounting to Rs 2 Lakhs or more will invite penalty u/s 271DA.

The scope of section 269ST is very wide and unless there is a notification by the Govt. no exemption is made available to any person or class of persons.

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