A is designated partner in LLP. There is land in the books of LLP shown as stock in trade. Partner A wants to dispose off his share to party other than the existing partners permissible under section 42 of the LLP Act
How valuation of share would be done and tax implications in this case ?
Summary: Transferring an LLP interest to a third party is treated as a transfer of a capital asset, triggering Capital Gains Tax for the partner. The valuation should be based on a professional report (e.g., NAV or DCF) to justify the price to tax authorities. You must also update your LLP agreement and file Form 3 and Form 4 with the MCA within 30 days.
CCI
Pro
CAclubindia
