Interested to Buy Any Domain ? << Click Here >> for more details...
There are three partners in a partnership firm. The firm
has office premises in the name of firm. Depreciation on
this asset is charged every in the books of the firm. Now
after depreciation the book value of this assets has become
Rs. 1000. Whereas the market vakue of this premises id Rs.
10 crorer. To bring this property at MV the partners
revalued this premised at Rs. 8 crorers in the books of the
firm and accordingly credited partner's capital account in
their profit sharing ratio. My questions are as under.
What is the income tax liability of the firm on revaluation?
What is the income tax liability of partner of each partner
on revaluation and credit to his capital account.
In future whether depreciation to the firm is allowed on
revalued amount under the income tax act.
What happens to the tax liability if one partner withdraw
his entire capital from the firm which includes credit on
revaluation of office premises?
When partners can withdraw out of their credit balance in
their capital account without attracting any tax liability
either by the firm or by partner?
What happens if one partner retires and he gets amount
equal to his capital account which inclides credit on
account of revaluation? is there any tax liability to the
retiring partner?
- 1 Answers
- 7569 Views
- I also Faced
- E-Mail Answers
Answer Posted / engineer
No IT for firm. Only capital increased, not profits.
No depreciation is allowed as no purchase of asset has taken place.
Partner has to pay income tax on the withdrawn capital depending on type of asset. If it is building etc there are indexation and long term capital gain exemption. But otherwise, by withdrawing the capital the asset has been sold to other 2 partners and a profit has been made and therefore liable to IT as rules of IT.
When the firm is dissolved and capital is taken back by the partners, there will be no IT.
Retirement causes payment of income tax.
these are my understanding. CA will answer this better
| Is This Answer Correct ? | 1 Yes | 5 No |
Post New Answer View All Answers
how to paid vat return file prosisior pls find me it
list out four public documents filed with roc which are public documents can be reviewed.
If you have got a client who refuses to go to court despite being summoned for multiple charges. What advice would you give him?
whether non payment of due leave is unauhorised deduction from wages or not?
Sir, My client A is doing job work on piece rate basis for B a establishment in Baddi in Himachal Pradesh and .His labour are working in Baddi Himschal Pradesh. and the payment was made to A after confirmation from the Quality confirmation department of the establishments and calculated on piece rate basis. Here B is exempted from excise duty from Excise. A has done work up to Feb, 2016t , 2009 nearly Rs15 - 20 lacs in total up to date . he is not charge any Service Tax. Pls advice in this case service tax is exempted if job work is done in excise exempt unit. Pls confirm in this case service Tax is exempted or not. If not exempted the then what amount b has to pay service tax.
To how much expect do you expect Counsel to do?
IN EXCISE,CAN A SECOND STAGE DEALER PASSON EXCISE LIKE A FIRST STAGE DEALER?
Many times law enforcement are certain that a particular crime has been committed by a defendant. What is your response if there is not enough evidence to stand at a criminal trial?
What would the English courts make of Antonio and Shylock's bargain from Shakespeare's The Merchant of Venice today? Would they enforce it?Why is the rule of law important?
Where do you plan to do your legal practice course (and/or gdl)?
IF WE PURCHASE FLEX AND SUPPLIERS PRODUCE BILL & CHARGED 4% VAT THEN WHAT WILL BE TDS STATUS.
What is capital reserve and how it is formed?
if we have purchsed FMS/VKGUY or SHIS against C form entry tax is applicable on it in M.P.
What is the last date of TDS deposition of the payament of 31- 03-2008 & 31-03-2009
Name the president of constituent assembly ?
