Distribution of property in a partnership firm

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A Partnership firm is engaged in Construction of a residential and commercial units.The 2 partners of the firm wants distribution of unsold flats and commercial shops between themselves.

 
So should the partners transfer the properties in their individual names or keep it in Firm's name and take money as and when it is sold. 
 
What will be the effect in firm's books and individual partner's books of account? 
 
What will be the Tax Liability? 
 
Replies (1)
Both partners capital account will be debited with the agreed amount for which sale deed is executed between firm and partners and such sale deed should get registered with registrar of immoveable properties in the name of partners. Where as propeties are debited in their books.Cash can not be distributed among partners. This is not a sale transaction. It is distribution of assets among partners.it is a pgbp income in the hands of firm bcs flats are held as stock in trade.

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