Dear all,
My query is that, in case of a construction company( a partnership firm, actually), if a few ready flats are converted into capital assets and are then transferred or withdrawn y partners at a later date, then is there an incidence of capital gains tax?
I am grateful for your earlier replies.
Thanks and Regards
yes capital gains as per sec. 45 (4)
(4) The profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a firm or other association of persons or body of individuals (not being a company or a co-operative society) or otherwise, shall be chargeable to tax as the income of the firm, association or body, of the previous year in which the said transfer takes place and, for the purposes of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer.
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