Firm X had 2 partners "A" & "B" and 2 separate factories; they decided to break the partnership, so a retirement cum addition partnership deed and an agreement was executed in which "A" retired from the firm and agreed to take one factory, and "B" added his wife "C" as a partner and is keeping the existing company name/business and the second factory.
A seperation deed is under the works, which will be registered from the registrar's office; this is for the purpose of getting the factory leases transfered into the names of the new owners!
The company's CA says that there will be a capital gains tax consideration after all this process is done, is that true, if so why? and what could be done to reduce or eliminate the capital gains consideration!
please advise!
CAclubindia
