CA Shruti Gupta (CMA FINAL CS Final) (1434 Points)
10 January 2013whether assets distributed to its partners at the time of dissolutioon is taxable in the hands of partners as gift (56(2)(vii).if the value of the same is exceeded 50000.
if not then whats the correct treatment ....
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 10 January 2013
the balance sheet of a partner shows the capital in the firm as a current asset.
At the time of dissolution, the reciept is first adjusted against this asset and it is nullified.
In case of surples, the excess amount is taxed as business gain.
Gift is a unilateral transaction whereas in this case, its a bilateral transaction as the partner recieves consideration for giving up the right of being a partner.!!
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 10 January 2013
Agreed with ankit 
CA Shruti Gupta
(CMA FINAL CS Final)
(1434 Points)
Replied 11 January 2013
CAclubindia
