Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2010 Hi sir,
1.Is there any sec that tarnsfer of an immovable property belonging to the firm,to its partners require registration on his retirement?
2.And when such asset is taxable?
3.Either in the hands of partner or firm?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 July 2010 There is no section prescribing registration of the property being transferred. However the same will be liable for tax u/s 45(4) and in the hands of the firm itself

(4) The profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a firm or other association of persons or body of individuals (not being a company or a co-operative society) or otherwise89, shall be chargeable to tax as the income of the firm, association or body, of the previous year in which the said transfer takes place and, for the purposes of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer.]