Answers On Topic: Retirement
The assessee is a partnership firm constituted by four partners having mainly stock in trade. The firm is reconstituted two partners of the firm have retired. The retiring partners are given stock in trade as their share the questions are as under: (i) The stock in trade given to the outgoing partner will be subject to capital gain or business profit, and it will be taxable in whose hands that is the hands of firm or the outgoing partner? (ii) The second question is , will it be capital gains or business profit, and income tax that has been paid,…
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Assessee is partnership firm having 3 partners. One of them has expressed his desired to retire from the firm due to diffrence of opinion about way of conducting the business. The retiring Partner is having debit balance of Rs. 6530000.00 to his account as on the date of retirement i.e. 31.08.2023. All of them agreed that the retiring partner will retire from the firm with immediate effect and he need not to pay any thing to the firm . Issues : how his debit balance is to be written of in the Books of accounts what are tax implication of…
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Assessee is partnership Firm enganged in the business of construction having 5 partners . Two of the five partners retired from the firm as per deed of retirement executed on 1.04.2017. It was agreed that one partner will get cash and other partner will get 1/5 portion of land from firm by 31.03.2023. accordingly they got the respective commitment as per retirement deed executed on 1.04.2017 in 31.03.2023. 1.what are implication of the above in the hands of firm as well as partners 2. whether it will make a difference if the said land is held as capital asset or…
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Partnership firm, stock in trade , retiring partners ?