Partnership Property Division

This query is : Resolved

Repaka Manikanta Balaji (Querist)
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27 November 2019 A land is there registered in the name of a partnership firm. Brother and sister are only the partners of that firm. Now one wants to continue that firm and the other wants to establish a new firm. Can the property held in the firm name be divided and 50% share of one partner be transferred to the newly established firm and the other 50% will be continued in the existing firm name ?? or Can the property of the firm be divided among the partners in their individual capacity ?? Suggest us any method or mechanism or possibility of any method for doing so without any tax implications ??

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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04 June 2020 Yes Property can be divided between them as required and if there is not sale in the transaction I do not see any tax implications....

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