Please Help: Tax on creation of goodwill
Posted Date : 09-Aug-2011 , 02:03:42 pm | Posted By: S. Gupta
Category :
Income Tax | Answers :
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We are partnership firm having 3 partners. One partner is retiring having 5 lacs credit balance in his account. What will be the tax incidence on firm or on partners if we crate goodwill of Rs. 10 lacs and pay Rs. 15 lacs to outgoing partner |
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Answers:
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 Answer by: CA Rajnish |
| Sir,I think only purchased goodwill is taxable as capital gains,when it is sold .created goodwill is a part of capital and no tax leviable in case of either firm or partner.
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