Cash Repayment of Entire Outstanding Capital upon Retirement, Income Tax

[Ravi Karda]

Dear All,

My query is mentioned below:

Upon retirement, whether outgoing partner be paid his entire outstanding capital in cash? Whether any disallowance under section 40A(3) or under any other provision shall be attracted or not. The amount is ₹ 15,00,000 /-

Please reply with Reference Notification / Circular Case Law.

Thanks

Ravi Karda