When a proprietorship is converted to a Partnership Firm is Capital Gain arises.U/sec 47 there is not specifically mentioned about CG in case of the above said issue.Please suggest on this.
Chinmay Das (Director) (39 Points)
18 March 2015When a proprietorship is converted to a Partnership Firm is Capital Gain arises.U/sec 47 there is not specifically mentioned about CG in case of the above said issue.Please suggest on this.
CA Momin Owais Ahmed
(Audit Manager)
(154 Points)
Replied 18 March 2015
Yes, capital gain arises, and the value of Consideration is Value recorded in the Books of Partnership Firm 45(3)
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