Question And Answer
Subject: disolution of partnership firm
Querist: Raghav
Answered by: Reply of the Expert is awaited;
Date: December 30, 2023
Query asked by Raghav

Blue Sea Investments LLP has 3 equal partners. It has made investment in property of INR 2 Cr and in a start ups of INR 3 Cr.
One of the partners wishes to retire from the LLP from 1 Jan 2024 due to his old age and need funds for his day to day living / medical expenses.
On 1 Jan 2024 the market value of property and value of investment in startups is INR 5 Cr and INR 9 Cr respectively.
What would be the tax impact on the LLP as well as retiring partner on amount paid to retiring partner by the LLP (INR 1 + 1 = 2 towards property and INR 1 + 2 = 3 towards investment in startups).
What would be the tax impact if continuing partners pay above amount to retiring partner instead of the LLP.

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Reply of the Expert is awaited. Please check back later

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