Format of Reconstitution of Partnership Deed in Case of Death of a Partner

– As far as income tax is concerned, I do not think there is too much room for manoeuvre. First of all, it is a reconstitution of the company, which is legally acceptable in the event of a change in the company, that is, the admission or death of the partner. Secondly, it is a replenishment with the same NAP and the same partners, so there is no transfer of fixed assets. Assets are generally recorded at cost. The concept of market value comes into force at the time of the sale of the assets. – Please go through the clauses of the old company deed that your father had signed. I think a lawyer can help you better in this case than a CA because it is not related to income tax, but to the partnership. In this case, you should read and review the retirement clause of the old company deed and the rights of retired partners or their heirs. However, the application of Articles 45(3) and 45(4) to the reconstitution of undertakings depends on the facts and circumstances of a case. I hope you find the information useful if you do, please rate it 5 and give your valuable feedback for my improvement.

In the event that the same company is founded after the death of a partner, it is not a new partnership and therefore there is no problem of capital gains. – I think you should ask for your father`s share at the time of his death, because you are one of your father`s legal heirs. Also seek compensation for non-payment of the amount to date. However, a lawyer can help you interpret the proceedings. There are no capital gains in points 1 and 2. Such a case does not fall within the scope of Article 45(3) or (45)(4). In this case, there is no transfer of assets or distribution of assets. The mere retirement of a partner and the reconstitution of the company do not subject this operation to capital gains tax.

Therefore, there is no obligation to pay capital gains tax in points 1 and 2. . . .