Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Capital gain

Save Share

This query is : Resolved

Sunil Garg (Querist)
Follow

05 August 2011 Firm having 4 partners is owner of a building. and wants to transfer the building by way of inducting another 4 persons, who want to purchase the assets & liability of firm for 20lacs more than the assets as per B/S. What will be taxability, whether capital gain to be attracted or Rs. 20lacs to be treated as income of the firm?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 August 2011 1 .Firm having 4 partners is owner of a building.

2. and wants to transfer the building by way of inducting another 4 persons,

How this is possible? Please clarify.
To whom the building will be transferred?
If it is to transferred to the new 4 persons, logically it is not correct to say that the new partners are being inducted.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

05 August 2011 FIRST REVALUE BUILDING AND CREDIT REVALUATION RESERVE TO PARTNERS CAPITAL ACCOUNT
THEN INTRODUCE FOUR PARTNERS
THEN RETIRE OLD PARTNERS BY PAYING UP THE SUM REFLECTED IN CAPITAL ACCOUNT
NO TAX CONSEQUENCE WILL ARISE

CA MANOJ GUPTA
JODHPUR
09828510543

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now