Answers On Topic: partnership firm
Partner retires in March 2020, but his account is settled in April 2020 by cash payment* – Is s.45(4) triggered, which is effective from AY 2021-22? S.45(4) does not apply ► ‘Reconstitution’ is defined as where a person “ceases” to be a partner of firm – where such cessation took place before introduction of law, it is not ‘reconstitution’ ► S.45(4) only shifts timing of taxation to actual receipt – basis of taxation continues to be accrual – which, in the present case, happened in March 2020 ► Receipt as also its connection with reconstitution are twin requirements for satisfaction…
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Assessee is Partnership Firm having 3 partners . Son and daughter of the one partner are working as employee for last more than 5 years . All the partners have decided to take the Term Policy( which is not key man Ins Policy) in the name of these employees to safe guard the interest of firm, therefore decided to claim the same as deduction U/SEc. 37 of the Act. The nominee of the policy will be Firm. Whether this is allowable deduction in the hands of firm U/Sec. 37 of the Act ? Whether the premium paid will be considered…
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A practical issue has arisen, though it is not of Technical Nature, but of an Administrative Nature, causing the concerned CA many practical difficulties, especially considerable space of his Office being occupied by the bulky Records of the Assessee. A Partnership Firm has presently pending litigation under the Income Tax Act, 1961 related to around AY 2005-06. Its Partners have refused to take back all Records of that Firm related to that AY from CA’s Office despite repeated request by him from time to time for the reason best known to them. Can CA request the following Authorities / Court…
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Assessee is a partnership firm having 17 partners engaged in the business of development of property . The said firm has one land which is hold as current assets having book value very less. In this firm two partners were admitted in the firm in the month of May. 2020, who are willing to invest the capital require for development of the said land and the project on the said land. Due to some reason the original 17 partners have decided to retire from the firm in the month of Dec. 2020. Before the retirement the partners have made revaluation…
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Assessee is partnership firm. DURING the course of Search shortage in stock is found. Assssee has stated that though there is no reason for shortage, as his maintaining stock record , however to avoid litigation partner agree that they will offer income on the value of shortage in stock in the return . However AO is saying he is going to add entire amount of shortage and tax the same by resorting to sec. 115BBE at special rate. Is he is correct .
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There are three partners in a firm. The firm is having two residential properties having high market value compared to cost. No depreciation has ever been claimed on the properties. The firm is carrying business of export and properties are shown as Investments in books of account. One of the partner who was having 80% share in the firm expires. As per deed the share of the said partners goes to remaining partners only. What will be impact under S.45(4) and S.9B of the act. Whether firm will have to pay the tax since there will be reconstitution on account…
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Applicability of Provisions of 45(4) and 9B of Income Tax Act 1961