Capital gains exemption for partnership firm

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Mitali CScumLLB (Querist)
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14 July 2012 Dear CA Friends...Sale of Lease License of an MIDC property by a Partnership Firm who accquired it for Rs 11,000 in 1975 for annual rent of re.1 and transferred the license for Rs 3.5 crores in 2012.What shall be the tax payable and how will the firm be able to save its tax? please help....

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 July 2012 The Lease License is treated as Capital Asset. LTCG would arise to the firm.
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U/s 54EC the firm can invest upto Rs. 50.00 lac in a financial year to get partial exemption.
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Mitali CScumLLB

Mitali CScumLLB (Querist)
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21 July 2012 Thanks Mr. Paras,
Please correct me , block method of assets can also help if the amount is invested by firm in same asset?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 July 2012 Had the asset been treated as a depreciable one, block method could be beneficial.
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