Income tax on sale of one partner's share in partner's firm

Tax queries 319 views 2 replies

Dear Sir,

Past History: 5 people have puchased a land in the INDIVIDUALS name and started a partnership firm by going for KSFC loan.

We have a situation, where one of partner of our firm has sold his share in the partnership firm to the external person(No rleation to seller). Registration has been done as SALE DEED with X amount. In a partnership firm, can we go for the SALE DEED? Or we should go for the tranfer of authourity?

In the sale deed, only the 20% of land has been sold considersing the revenue documents. What will be the income tax for the seller on the amount X?

Will it be considered as a Capital Gains? Or it will be considered as an income from the partnership firm? 

If possible please provide the section under which the seller is taxable?

NOTE: Seller is exiting from the Partnership firm and New Partner is joining.  Please do let me know if any question.

Best Regards,

Praveen.

Replies (2)
no capital gain in the hand of individual.it's exempted income.

Hi Arun,

Thank you for your timely reply. Could you please provide the supporting data if "No Capital Gains", May the name of the clause and also where can I find the clause?

Best Regards,

Praveen.

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