Can there be any capital gain

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Parth P. Dodia (Querist)
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23 March 2013 IF A PARTNERSHIP TRANSFER ALL ITS INVESTMENT OF LISTED SECURITIES LIKE RELIANCE , TATA , ETC. TO ALL PARTNER PERSONAL ACCOUNTs than will it be liable to capital gain or not ???

Shivang Chokshi

Shivang Chokshi (Expert)
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23 March 2013 yes it will be liable to capital gain

Parth P. Dodia

Parth P. Dodia (Querist)
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23 March 2013 can u plz provide me the section refernce...for the same

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Shivang Chokshi

Shivang Chokshi (Expert)
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23 March 2013 45(3) talks about partner transferring asset to firm being chargeable to capital gain. value to be taken as per recorded in books.

45(4) talks about talks about distribution of capital asset on dissolution of a firm where fmv needs to be taken..

thus based on these sections if a firm is transferring its asset to the partner, then it will be capital gain for the transferor i.e. the firm