Sale of property by a partnership firm

Chandresh Sanat Jatania (Chartered Accountants) (116 Points)

11 August 2011  

Hi,

A registered partnership firm has sold a capital asset (property). I wanted to know the following:

1. Whether a registered firm is entitled to own property?

2. Can the same be sold?

3. In whose hands will the gains generated be taxable, in the hands of the firm or in individual partners.

4. In case the same is taxable in the hands of individual partners how will the gains be distributed. Whether the partners can claim indexation benefit for calculation of taxable capital gains

5. In case the same is taxed in the hands of the firm, can the firm avail of indexation benefir for calculation of capital gains.

6. Can a firm / partners claim exemptions u/s. 54 / 54 EC on the above taxable gains

7. Are there any other things to be considered in the above transactions.

Kindly reply to the above as the same is an urgent requirement.

Kindly accept a Thank You in advance for your responses