Hi..can anyboday suggest what can be the tax treatment if a sole proprietary business is sold for a lumpsum consideration to a partnership firm ? Proprietary business is in existance for more than 3 years.
Also if that potetial buyer (partnership firm) want to admit the proprietor into partnership as new partner, does it amount to conversion of proprietary into firm from the proprietor's point of view. How the lumpsum consideration be taxed in the hands of proprietor then? Buyer (firm) is not offering the consideration on the basis of financials of proprietor.
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