13 December 2013
3 partners - Partnership Firm Old Ratio - 33.33%, 33.33% and 33.33%
Now 1 new partner admitted New Ration - 25%, 25%, 25% and 25%
My question is relinquishment of 8.33% share in the profits and remuneration by old partners, will it attract capital gain in the hands of old partners??
13 December 2013
It can be argued that the partners have surrendered something out of their respective shares. . Simultaneously, they have received a human brain, man-power and inherent benefits attached with the personality and shared their responsibility with the new comer. . The consideration as such can not be decided in the numerci terms so as to implement capital gain provisions. . It will not attract Capital Gains.
CAclubindia
