House property for partnership firm
This query is : Resolved
dhaval shah
(Querist)
30 September 2011
HELLO SIR,
MY CLIENT WAS CARRYING THEIR BUSINESS (PARTNERSHIP) UP TO LAST YEAR ON FIRM PROPERTY (PROPERTY ON FIRM NAME) , BUT DURING CURRENT YEAR THEY CLOSED DOWN THEIR BUSINESS AND THEY HAD GIVEN PROPERTY ON RENT,
NOW MY QUERY IS HOW THEY TREAT THEIR BUSINESS PROPERTY RENT??
THAT AS A INCOME FROM HOUSE PROPERTY OR BUSINESS
THANK YOU
MY CLIENT WAS CARRYING THEIR BUSINESS (PARTNERSHIP) UP TO LAST YEAR ON FIRM PROPERTY (PROPERTY ON FIRM NAME) , BUT DURING CURRENT YEAR THEY CLOSED DOWN THEIR BUSINESS AND THEY HAD GIVEN PROPERTY ON RENT,
NOW MY QUERY IS HOW THEY TREAT THEIR BUSINESS PROPERTY RENT??
THAT AS A INCOME FROM HOUSE PROPERTY OR BUSINESS
THANK YOU
CA Parth Shah
(Expert)
30 September 2011
You have mentioned yourself that your client has colsed down the business. One more thing, read the Partnership Deed carefully whether it contains the any clause regarding business of renting out property..
dhaval shah
(Querist)
30 September 2011
THANK YOU FOR YOUR REPLY
No there is no clause regarding business of renting out property , so what treatment should be given by us
No there is no clause regarding business of renting out property , so what treatment should be given by us
03 October 2011
If there is no option in the agreement than it can be changed with the consent of all the partners.
CA Parth Shah
(Expert)
03 October 2011
If there is no clause in deed but still firm is not dissolved then income will be taxed in Firm's hands only as property is in name of firm.
The only option is to dissolve the firm but in that case Capital gain tax shall be attracted to the partner who takes away such property.
The only option is to dissolve the firm but in that case Capital gain tax shall be attracted to the partner who takes away such property.
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- EPF ECR NEW RULES Sep 17th 2026
- MSME disclosure and disallowance
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
