Mr. A (proprietor) wants to transfer his entire proprietory profession to his son Mr. X, in which a plant and machinery and other assets of Rs 25,00,000/- (approx)exist.Please help me to know, whether
a) is there any capital gain will arise in this transfer in the hands of Mr A?. If yes, then please help me with proper reference of section and rule of Income Tax Act-1961.
What is the tax treatment in the hands of Mr. A and Mr. X for the AY 2015-16 if the entire profession will transferred by Mr. X (Proprietor) to Mr. X (Son) say on 31.08.2014 without any consideration. Is there any capital gain will arise or not?
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