| Question And Answer | |
|---|---|
| Subject: | retiring partner |
| Category: | Income-Tax |
| Querist: | bs |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | lesser than capital, Retiring partner |
| Date: | May 7, 2023 |
If a retiring partner accepts a sum lesser than [capital -accmulated losses] what is tax impact on firm/LLP and partner post amended 45[4] etc ?
As per the formula prescribed in section 45(4) of the Act, there cannot be a capital loss. The Capital Gains will be deemed to be zero.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org