Take over of partnership firm

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Vaibhav Garg

38 Points Posted on 13 April 2013

Hello,

Query--
In a partnership Firm :- A: 60% and B: 40% both agrees to transfer the firm in the name of C (Son of Mr. A) on 31/03/2013 at the amount of the there capital balances as on date. My question is that what are the Legal Documents to be prepared(For eg: Dissolution deed or any other document) in this case for transferring the firm in the name of Mr. C. Also, what are the other statutory compliance in the IT Act and with Registrar of Firms (if any).

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COMPLETE TAX SOLUTIONS

51 Points Posted on 14 April 2013

For transferring A's share to A's son you simly need to make a gift deed which specify that A transfer his Share in Favour of his Son Mr. A without any consideration. As per provision of income tax Act, 1961, sec 56 (2) "GIFT TO RELATIVE IS EXEMPT". FOR Transferring Mr. B's Share, Show Mr. B's Net capital as unsecured loan in books of account of a Son. For more clarification send your complete query at completetaxsolutions.rediffmail.com

Vaibhav Garg

38 Points Posted on 15 April 2013

That is for the treatment in books but what about the legal documentation. Dissolutuin deed have to be prepared or any other document in connection to dissolve partnership as there will be no more partnership between the partners.??????