Query Regarding Income Tax Rate on Gain from Transfer of Partnership Stake (LLP Partner)

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pooja Garg (Querist)
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09 March 2026 Hi,

I have a query regarding the income tax implications on the transfer of a partnership stake.

For example, an LLP has three partners—two are individuals and one is a company. The company partner has purchased the stake of the remaining two individual partners.

Now, the two individual partners would like to understand the applicable income tax rate on the gain arising from the transfer of their partnership stake to the company partner within the LLP.

Additionally, they would like to know what the applicable tax rate would be if the stake is transferred to an external entity outside the LLP.

Kindly clarify the applicable tax treatment in both scenarios.

Thanks.

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