Due to recession one of the partnership firm is closing down. But partners are worried about capital gain tax on transfer of assets at the time of dissolution. My question is whether firm is liable to pay the CG Tax on such transfers or the same will be divided among the partners. If divided among the partners whether it can be in Profit sharing ratio(PSR)?
Will it be beneficial if the assets are first transferred to partners in their PSR and then firm goes for dissolution?
Basically what can be done to reduct CG tax liablity of either firm or partners. Pls suggest.
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