Capital gain in distribution of assets

Rajiv (Querist) 19 August 2016 This query is : Resolved
Dear Experts, We have a partnership firm in which Fixed assets of the firm (land/building/machinery) are registered in the name of the firm.Its a partnership firm with only two partners and with equal shares in profit/loss and capitals.Now, We want to divide the land and building between us by having two seperate registries of the land of the firm i.e half land will be registered in name of one partner and other half in other partners name. Kindly let us know if that would raise any capital gain for any partner or for firm.

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R.K Nanda (Expert) 19 August 2016
Contact tax lawyer.

Kumar Doab (Expert) 19 August 2016
Your own tax lawyer can advise you best.

Guest (Expert) 19 August 2016
Seems to be purely an academic question of a law student.
.

ABHIMANYU JHAMBA (Expert) 19 August 2016
Would be taxable in the hands of the firm.

Though there are certain judgments wherein on specific facts, there was no tax liability in the hands of firm or partner.

Abhimanyu Jhamba
CA/ Advocate
9218999999

Rajendra K Goyal (Expert) 19 August 2016
Consult your tax consultant.

adv.bharat @ PUNE (Expert) 19 August 2016
Abhimanyu Only dividing property half on partners name or firms name there is no gain in net income or either firm or partner.

Hence not amount to any capital gain.

If u understand my solution then give THANKS on my profile.

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