Question ID :
40403
Cash Withdrawl by Partners
Whether Partners can Withdraw from Partnership /LLP Firm in Cash. If yes, whether provisions of Sec 269ST will be applicable
Posted by
AJAY JAIN
on
Sep 25, 2019
Filed Under
DIRECT TAXES
Hi Ajay, Partnership firm and LLP are governed by partnership agreement/LLP agreement. Partners may withdraw cash from their capital if it is not restricted by such agreements. Going by the literal interpretation, in my view, 269ST would be applicable as both partner and partnership firm are separate taxable entities under Income-tax law. As this is a new section and no judicial precedents are available in this connection, conservative approach may be adopted and it would be better to receive money by any mode other than cash.
Posted by
ASHWIN RAO VARANASHI on
Sep 25, 2019
Answer ID :
80182
The Provisions of 269ST are applicable to each and every transactions involving cash deposit or withdrawal by the partner irrespective of the nature and irrespective of the relation between parties
Posted by
Suhas K on
Sep 25, 2019