Tax on capital gains - tax planning

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Tara Khandelwal (Querist)
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09 August 2013 A partnership firm consists of 3 Partners. Father and 2 sons. There are two properties in the name of the firm. By mutual understanding the sons want to take away the properties. Please advice how to avoid tax on capital gains with regard to transfer.Whether this is a case of family arrangement?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 August 2013 The properties can be transferred at fair market value looking to the restriction U/s 50C. Firm has to pay capital gains tax.
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If the gain is a STCG, related with depreciable assets, the firm can purchase asset in the same block. In case of LTCG, investment in capital gain bonds may be thought for.
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Tara Khandelwal

Tara Khandelwal (Querist)
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09 August 2013 Sir,
Please clarify the following
1)If one of the partner retires and he takes away one property and other partners continue with the firm...would there be any tax savings for the firm
2) The partnership dissolves and the partners are given properties..The firm has to pay capital gains tax

Sir I want to know which would be beneficial to reduce capital gains tax...Please give me some reference with Sections and case laws

Tara Khandelwal

Tara Khandelwal (Querist)
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09 August 2013 @expert....why it is not a case of family settlement..they are related to one another..

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