Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 Query
1. Applicability of capital gain when a proprietary concern of ‘A’ , all assets and Liabilities are taken over by newly formed partnership firm ABC and Co- ‘A’ along with ‘B’ (wife) and ‘C’(son) become the partners. The ‘Proprietary ’ concern is having immovable property at book value of Rs.4 lakhs and guidance value of Rs.21 lakhs.
2. This newly formed firm takesover the assets and liabilities of firm PQ & Co as slump sale. This is done by way of dissolution deed. The firm PQ & Co having the immovable property at book value of Rs. 5lakhs Guidance value at Rs. 26 lakhs and net worth of Rs.6 lakhs. The liability regarding capital gain to be discussed. If there is common partner would it makes any difference?

Amol S Joglekar

Amol S Joglekar (Expert)
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22 January 2015 What do you mean by GUIDANCE VALUE????

In the first case, the capital gain shall be taxed in the hands of A.

In the second case, for ABC & Co (Partnership firm), no any question of capital gain.
For PQ & Co (Partnership Firm) has to pay the capital gain