dear sir nd frndz ,
In a partenrship firm wid 2 partners, i f1 of the partners gifts his share of partnership 2 d other partner after which the said partenrship turns out 2 b a proprietorship , does sec 45 (4) apply in dis case ?
Dharmesh k. Dubey (Student) (188 Points)
28 October 2009dear sir nd frndz ,
In a partenrship firm wid 2 partners, i f1 of the partners gifts his share of partnership 2 d other partner after which the said partenrship turns out 2 b a proprietorship , does sec 45 (4) apply in dis case ?
Deepak
(Student)
(127 Points)
Replied 20 November 2009
No. There will not be any capital gain inthis case because it is the case of dissolution of the Firm.
CG will arise only if the existing aprtners carry the partnership except the retiring partner.
Bharat Khurana
(Student)
(153 Points)
Replied 05 January 2010
when partnership firm becomes a propertiership concern then there will be dissolution of firm so section 45(4) will be attracted and partnership firm shall be liable to pay tax on capital gain. for this purpose fmv of the assets shall be taken to be the full value of consideration
kumarsatish022
(Professional)
(165 Points)
Replied 05 January 2010
As per Case of ALA Trading Co (Supreme Court) if P.F is dissolved capital gain shall be attracted and for which FMV concept is used to levy capital gain
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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