05 September 2010
Suppose if a partnership firm, is transferring some listed shares to a partner at a cost. The shares are held as investment by the partnership firm. What is the tax treatment in the hands of partner and partnership firm?
Kindly note that the shares are not transferred on account of dissolution of firm or retirement of partner.
05 September 2010
firm will be liable for tax at the market rate of the shares as per section 45(4). The section states assets distributed on dissolution, retirement or otherwise.
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