capital gain

Tax planning 1437 views 7 replies

  if in a partenership firm all the parteners retired and new enter

the retiring parteners take the amt in excess of their bal in capital a/c.

whether they are liable to pay C.G.tax???

or the Firm??

what can be the effect of such transaction??

how to escape from paying C.G.??

Replies (7)
It is a case of relinquishment of rights by the partners in the partnership business. This right is a capital asset. Relinguishment is a transfer as per IT act definition. SO IT IS TRANSFER OF A CPITAL ASSET BY PARTNER .......ALL OTHER CONSEQUENCES WILL FOLLE
if all the partners retire first before inducting new partners........it becomes case of dissolution of firm ........this point is to be taken note of while planning
thxs for reply. can C.G. be avoided in any way if i want to avoid it in tis case??? plz reply
I am not very sure but I think C.G does not comes into existence.. If I am wrong kindly correct me...
see in my reply box... you can email me at jimin_99variya @ yahoo.co.in
Expecting few more replies.
dear jimmin . pl refer to sighania 's book on this topic with practicle problems clealy in new edition for ca final thanks


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