Tax relief
Vikas K Goswami
(Querist) 23 November 2014
This query is : Resolved
sir,
i was having a stone crusher business in partnership with 2 other, all of us sold it to some other party and received our share of money.
i invested the full amount in opening restaurant in first and second year of receipt of the above said amount.
sir, is there any relief in payment of tax for the amount received from selling stone crusher business in any provision of income tax act.
Rajendra K Goyal
(Expert) 24 November 2014
What type of relief, you have not specified.
Better consult your tax consultant.
ajay sethi
(Expert) 24 November 2014
raise query in CA club india .com
Anirudh
(Expert) 24 November 2014
From your post, it appears that your partnership Firm has been sold to the new partners as a going concern i.e. you have sold the entire stone crushing business that your partnership Firm was carrying on, to the new partners who are now carrying on the business.
In such a case, the excess amount received than the net worth of your partnership firm, will be treated as 'Capital Gain' and will be taxed in the hands of the Firm.
Therefore, all the three partners will only get the balance i.e. after taxation in the hands of the Firm. The amounts representing your share in the Firm, which you received from the Firm is not taxable in your hands.
Therefore, what you do with the money that you received after the sale of the Partnership Firm, has no relevance.
T. Kalaiselvan, Advocate
(Expert) 27 November 2014
Hope you have been properly clarified by expert Mr. Anirudh (?)if still some doubts linger around, you may consult a local tax consultant for further opinions.
