Capital gains
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 May 2016
Dear Experts one of my client who is a partner in a Real Estate partnership firm has decided to retire by taking his share from stock in trade. I want to know does it amount to Capital Gain or Business income in the hands of partnership firm? Please suggest.
04 May 2016
Transfer of stock-in-trade results in PGBP not capital gains.
Section 45(4) is applicable on transfer of a 'capital assets' by way of distribution of capital assets on the 'dissolution' of a firm.
The provisions of section 45(2) does not apply for two reasons:
1) There is no transfer of capital asset; and
2) There is no dissolution of the firm.
Section 45(4) is applicable on transfer of a 'capital assets' by way of distribution of capital assets on the 'dissolution' of a firm.
The provisions of section 45(2) does not apply for two reasons:
1) There is no transfer of capital asset; and
2) There is no dissolution of the firm.
04 May 2016
there is tfr of assets to partner , income for firm will be under business income and taken on market value of assets given to partner.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
