banner_ad

Capital gain on admission of a partner

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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??
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details