Dissolution of partnership firm

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Mahendra (Querist)
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16 January 2012 Dear All,

What is tax implication (Spl. Capital gain)on dissolution of partnership firm (all partners retired simultaneously by selling firm to other persons)in the hands of the partner.

Thnks in advance,

Regards,
Mahendra

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 January 2012 There is a difference in selling the firm to other persons and dissolution.
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When a firm is sold as such to other persons then it can not be said that the firm has been dissolved.
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A Deed/ Agreement must have been prepared to effect the transaction. Pl. Provide certain further information in this matter.
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Mahendra

Mahendra (Querist)
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17 January 2012 Thanks sir,
i want to know the capital gain impact on sale of firm to third party. i.e. in the given case if firm sale a asset (firm have only one asset)held for short term than the firm required to pay short term capital gain tax. Now suppose instead of selling the asset, if we sale the firm, who will pay the capital gain tax (firm or partner)

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