Partnership firm
there were two partners in a partnership firm. one of the partner expired. after 3 days of his death the wife of the deceased partner was added as a partner. my query is does the partnership dissolve on death of the partner and a new firm is created. or does the old firm continue and it is treated as reconstitution? An immediate and appropriate reply would be highlt appreciated. thanks in advance.
Replies (5)
Such act of admission/death/retirement results into reconstitution. As change in Partnership Deed takes place after such events, which in eyes of law is termed as dissolution of old firm and formation of new firm.
Does it mean that they have to again apply for a fresh PAN car, TAN no, and do all such needful things like it is a new firm?
There is not a dissolution of partnership but just reconstiution of partnership . The cases where there is reconstitution of partnership there are certain restrictions in income tax as to carryforward of lossess and all , There is no need to apply for fresh pan or tan .
Whether partnership will dissolve or reconstituted, it will depend upon the language of the original deed, wheter deed deal with death or remain silent.
If it is silent it will amount to dissolution or vice- versa . If it provide firm remain continue then it is a reconstitution.
However in case of two partners it will amount to dissolution in both cases.
Yes you'll have to start as a new firm with new PAN, TAN, etc.
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