my client firm was retired one partner and then admitted another one. so retiring partner capital account rs.15lakhs transfer to admit partner. because both partners are brothers. can I do so?
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Quick Summary
This discussion addresses the transfer of a retiring partner's capital account to an incoming partner, specifically when the partners are brothers. While a direct transfer might seem straightforward, it's generally not permissible due to differing PANs. The recommended approach involves executing a new partnership deed and recording the amount as an unsecured loan in the new partner's books.