two partner agreed to start business of firm which is unregistered. Business of firm is to acquire reservation land and handover it to corporation & obtain TDR/FSI/Development Right Certificate.
firm purchase land in 2018 n recorded as asset with liability occurring against it. on dissolution one partner take this land along with liability.
Tax implication in above scenario.
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Transfer of property between firm & partner.
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Upon the dissolution of a partnership firm, the transfer of land to a partner is a taxable event. The firm is liable to pay tax on the difference between the land's Fair Market Value and its original cost of acquisition (under Section 9B). Additionally, if the total value of assets and money received by the partner exceeds their capital account balance, the firm may face further taxation under Section 45(4). You should consult a Chartered Accountant to calculate the exact tax liability based on the firm's balance sheet and the specific valuation of the land.
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