Transfer of asset under 45(4) to partners

vinodk.Nesar (AUDIT) (100 Points)

10 February 2009  

Dear all,

When a firm gets dissolved and transfers assets to partners, it attracts Sec45(4).
But, if not at the time of dissolution it transfers the asset in return for capital contribution will it attract capital gain ? and what rate to be adopted during such transaction, wheather Market Value or Book Value of the firm ?

Thanks in advance