Revaluation of land
This query is : Open
30 April 2009
A Partnership firm revalued its land. The difference between the revalued amount and the cost as per books of accounts were credited to the capital account of the partners. Subsequently two more partners were admitted into the partnership and the old partners withdrew the entire capital and retired from the partnership. The partnership firm continued as a going concern with the two newly introduced partners.
Whether this transaction results in any income tax liability for the partnership firm as well as for the retired partners.
Whether this transaction results in any income tax liability for the partnership firm as well as for the retired partners.
30 April 2009
There will be no liability in case of firm as the land has not been sold by the firm.. and cost of acquisition will remain same for the firm..
This transaction will be covered under sec. 188 and separate assessment will be made for both the firms.
Please note that here sec 45(4) will not apply as there is no distribution of assets.
This transaction will be covered under sec. 188 and separate assessment will be made for both the firms.
Please note that here sec 45(4) will not apply as there is no distribution of assets.
30 April 2009
As regards taxability in the hands of retired partners i am not sure.. so keeping this query open
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
- 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
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- 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?
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
