| Query | Partner had debit balance in partners capital account. He left the firm without paying overdrawn amount to the firm. Can partnership firm claim this as business loss or unrecoverable loan and write off the said amount in profit & loss account. |
| Answer | : At the time of retirement, a deed of retirement would have been executed, according to which the partner’s capital account would have been fully and finally settled. Therefore, loss on settlement, if any, would be a capital loss.
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| Query | If a NRI sends remittance more than Rs.7 Lacs from his bank account maintained in India. Wether TCS of 5% will be applicable on him. Pleas Guide |
| Answer | The provisions of Tax Collected at Source on Foreign remittance should not be applicable to a Non-Resident remitting funds to and from India through their NRE bank account or through NRO bank account under the remittance of assets scheme.
However, as there is no clarity on the issue or any judicial pronouncement. The Hon’ble Income-tax Appellate Tribunal in the case of Arthur Anderson & Co (ITA No. 9125/Mum/95; order dated 29th July 2003) dealt with the principles of abundant caution i.e., ex abundanti cautela, when there is a doubt on application of TDS, it is advisable deduct TDS.
Therefore, it is advisable to pay TCS and adjust the same against the return of income.
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| Query | sir, |
| Answer | Section 115A of the Income-tax Act, 1961 (Act) pertains to “Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer” which is not the case of the assessee as the assessee is an individual.
Section 112A of the Act pertains to “Tax on long-term capital gains in certain cases” which was introduced vide Finance Act, 2018 when exemption on long term capital gains under section 10(38) of the Act was repealed.
Further, section 112(c) relates to Capital Gains on long term capital gains for a non-resident.
Therefore, the section 112 and 112A (if applicable) of the Act should be applicable to the case of the assessee.
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