MY CLIENT WAS CARRYING THEIR BUSINESS (PARTNERSHIP) UP TO LAST YEAR ON FIRM PROPERTY (PROPERTY ON FIRM NAME) , BUT DURING CURRENT YEAR THEY CLOSED DOWN THEIR BUSINESS AND THEY HAD GIVEN PROPERTY ON RENT,
NOW MY QUERY IS HOW THEY TREAT THEIR BUSINESS PROPERTY RENT??
30 September 2011
You have mentioned yourself that your client has colsed down the business. One more thing, read the Partnership Deed carefully whether it contains the any clause regarding business of renting out property..
03 October 2011
If there is no clause in deed but still firm is not dissolved then income will be taxed in Firm's hands only as property is in name of firm. The only option is to dissolve the firm but in that case Capital gain tax shall be attracted to the partner who takes away such property.
CAclubindia
