Tax planning for a partnership firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2011 A partnership firm having a non depreciable asset in the firm having two partners with equal profit sharing ratio. The existing partners want the property to be in the name of their sons.
What what the best tax planning technique to get the property transferred to their children who are major, whether getting them into the p'ship firm or otherwise and that too with minimum tax implication.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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19 August 2011 you should enter son into partnership with some cash capital. Then father of the son will retire from partnership firm.And take cash balance which is introduced by son. the remaining one partner and son will dissolve partnership by mutual understanding. the property will allocate to son.