Dissolution of partnership firm

Hi

Business Stock should be considered as sales and profit should be taxable as income from Business and profession rather than capital gain. Again stock could be transfered at cost value avoiding any tax liability in the firm.

Thanks,

Hii,

If i transfered at a cost value, it wont be taxable in hands of partner?/.. Can you please imform me the governing section?.. I will transfer closing stock at cost only so neither firm has to pay tax and partner?

This stock are business stock in trade and not capital asset for the firm than why capital gain clause would be applicable to the firm. It just need to be sales of goods above cost value and withdrawal for partner. This sale value should also include applicable sales tax.

If capital asset is converted into stock in trade than this conversion will attract capital gain which is not in your case. For you it is reverse so I dont think capital gain provision would be applicable at all.

Thank you for the advice..