Capital gain on retiring partner in existing p'ship firm

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Hitesh Alwani (Querist)
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05 April 2014 Dear Friends and Sir and Madam,

When a partner retires from existing p'ship firm by receiving amount of his share by cash/cheque(viz.after revaluation of fixed asset-Land in this case,) in such case whether tax liability arises?
if yes then, to whom? and if no then, why?

I need detail answer with referance please,

Rupesh Jain

Rupesh Jain (Expert)
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05 April 2014 r/sir

partner recd amount from firm . capital gain not arise due to firm not sold his assets.
it treat as premium paid by remaining partner for not doing similar business to retiring partner.

Hitesh Alwani

Hitesh Alwani (Querist)
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05 April 2014 Thank you sir,
but if value of land has been increased in the books of accounts and corresponding effect has been given in the all partners capital account in that case...
please tell me effect in this above mentioned case....
thanking you..

Hitesh Alwani

Hitesh Alwani (Querist)
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05 April 2014 i mean at the time of retirement...

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