Cash withraw limit in Partnership firm

551 views
User Avatar

32 Points Posted on 12 April 2020
Can partner take 20000.00 in form of cash every month in a partnership firm.
Is it allow by law or not please clarify.Tks
2 Reply Share Follow
On 12 April 2020 at 22:08 Report
Replies (3)
Quick Summary
This discussion clarifies the rules around partners withdrawing cash from a partnership firm. While there's generally no limit on drawings, taking cash as a loan or advance could incur penalties under Section 269SS. If taken as salary, it may be disallowed as an expense under Section 40A(3). It's crucial to understand the nature of the withdrawal to avoid legal issues.

User Avatar

Article Assistant
411 Points Posted on 13 April 2020
It depends upon how the partner is taking ? either
1) Drawings
2) Loan/advance
3) Salary
Reply
On 13 April 2020 at 08:05
User Avatar

"Do the Right Thing...!!!"
128157 Points Posted on 13 April 2020
@ Mr Dinesh Banthia.,

Can You elaborate with more details for Your query...?!
Reply
On 13 April 2020 at 08:38
User Avatar

Article Assistant
411 Points Posted on 13 April 2020
1) Drawings - No limit
2) Receipt of Loans/advances -Sec 269SS - penalty will be levied
3) Salary - Expense Disallowed as per Sec 40A(3)
Reply
On 13 April 2020 at 09:11

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Guidence requested for a Finance Professional with
  2. Expert Opinion Required – Form 140 Gross Amo
  3. WRONG TAX DEMAND - formal responses , rectificatio
  4. Foreign remittance
  5. Affordable Residential Flats in Gurgaon
  6. Manufacturing
  7. TAN REGISTRATION ON E-FILLING SITE
  8. Form 10-IEA – Continuing Old Regime
  9. Income tax act 2026
  10. Belated Return where Form 10IEA filed this year to

More recent discussions | Post

Related Topics :

Loading