Income tax.

AS A PARNER IN A FIRM ALL PARTNERS ARE JOINTLY AND SEVERALLY LIABLE FOR ANY TAX LIABILITY OF FIRM   AS ON DATE OF RETIREMENT

.ITO CAN RECOVER SUCH LIABILITY FROM ANY INDIVIDUAL PARTNER FAILING WHICH CAN BE RECOVERED FROM OTHER PARTNER . IF ENTIRE LIABILTY IS COLLECTED FROM ONE PARTNER THEN SUCH PARTNER CAN RECOVER  EXCESS OF HIS SHARE OF TAX LIABILITY  FROM OTHER PARTNERS. 

YOU CAN BRING TO NOTICE OF ITO THAT YOU HAVE RETIRED AND CAN FIND OUT YOUR SHARE OF TAX LIABILTY.  YOU CAN PAY YOUR SHARE OF LIABILITY  AND IF BEFORE YOUR RETIREMENT YOUR SHARE OF  LIABILITY IS ALREADY RETAINED BY THE FIRM THEN INFORM THE SAME TO THE ITO. IN SUCH CIRCUMSTANCES YOU CAN NOT BE PROSECUTED,

EVEN OTHERWISE ITO WILL NOT LIKE TO PROSECUTE A PARTNER IF HE CAN RECOVER DUES FORM OTHER PARTNER. ITO WILL FIRST PROSECUTE WORKING PARTNER AS HE IS WELL VERSED WITH  ACTIVITY OF BUSINESS OF THE FIRM ALONG WITH  OTHER PARTNER . IT MAY BE NOTED THAT IF YOU ARE NOT WORKING PARNER THAN ITO WILL NOT PROSECUTE YOU ALONE SINGULARLY .

IF ,THE ANCESTRL PROPERTY IS OF FIRM'S ASSET THEN  ITO WILL FIRST RECOVER FIRMS DUES FROM SUCH ASSET . IF SUCH PROPERTY IS GIVEN TO  ANY OTHER PARTNER  BY WAY OF HIS SHARE FROM THE FIRM BY WAY OF ADJUSTMENT THEN SUCH ADJUSTMENT IS TRANSFER OF IMMOVABLE PROPERTY AND  IS TAXABLE AS CAPITAL GAIN IN HANDS OF FIRM,

PARMAR V D   [ADVOCATE]

But i am told that if i have been retired from the firm without taking any money  and my money is deemed adjusted in the retirement then my tax liability has to be borne by the active partners.I am not liable to pay for my taxes also arising out of my partnership in the firm if i am retired without any money paid to me.Is that true?

If there is no balance available in your  capital account   or there is overdrawn account as you have over drawn your capital account longback then who will pay your part of liability even if you retire without taking any money at the time of retirement.