Capital gain of firm, taxable in hands of partner ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 Dear Professionals,

A) I wanted to ask if a Long Term Capital Gain which is taxable in hands of a Partnership Firm and Tax has been paid by partnership firm on that amount. Will the amount which is appropriated as profit in hands of partners is treated as capital amount not taxable or taxable in hands of partner ?

B) Also, one of the partner is holding investment in that capital asset. Will the Profit amount which is appropriated in his capital account will be treated as capital gain in his hand ?

Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Dear
A. The firm has paid tax on capital gain then the apportioned money will not be taxable in hands of partner.
B. unable to understand the query no.2

gautam thakur

gautam thakur (Querist)
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06 January 2016 dear ankur ji, actually one of the partner is also holding investment in that land which is sold and he also got portion of profit out of capital gain after paying tax which is credited to his partners capital Account. AO wants to tax the amount (amount of share in profit of cap gain minus investment cost) as Short Term capital gain in his personal return ?

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Ankur Singhal

Ankur Singhal (Expert)
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07 January 2016 Dear
In such case the capital gain was to be calculated for the firm and for the partner separately.
as firm and partner are the owner of the property.

gautam thakur

gautam thakur (Querist)
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07 January 2016 dear ankur ji, i wanted to ask if that partner has given advance to the partnership firm and he got this amount back as amount was due from firm to him ? then in this situation whether amount recieved is taxable ?