While retirement from parnership firm if partner received share of goodwill & profit on account of revaluation of other assets .
Whether this income is taxable in the hands of retiring partner ? if yes under which head Business or CG?
And whether partnership firm can claim these as expenses?
I think it should be chargeble to tax U/h- B&P to the partner to the extent Not charged to tax to the firm.
And Capital gain tax is not attracted as there is no transfer of any capital assets.
Now my Question to you.........
There are four partners P,Q,R & S in Partnership firm 'Poojara & Co' having equal right. among them S is going to retired and at the time of retirement his share from firm being to Rs.25 lacs which he relinques such right in favour of such partenership firm. Whether such relinquesment is chargable to capital gain tax or not?
R P S K & Associates
Nashik
CA Inter
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