Property purchase as on 1988, a mumbai based register partnership firm having four partners, about 27000 sq. mtr. land they purchase in mumbai suburb Rs. 3 lac, and yr. 2009 two partner retried, but in agreement does not mention capitol value gain in current asset of firm. as per market value in 2009 the asset value of that land is about 20 to 25 cr. also two new partner is add in 2009 with rs. 50 thousand capitol and they owner of asset as per their share in partnership firm is about 10 cr. my query is should they liable for capitol gain tax and any income tax ( both retired and new add partners or firm should liable for the tax. HASMUKH VORA MOB. 9987844285
In the present case capital gains is taxable in the hands of the Firm and not individual partners.
We need to check the agreement between the partners i.e. retired partners and the then existing partners to comment on the share. In the retirement deed and also new partnership deed the terms need to be seen so as to check the terms regarding the property.
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If the retirement of partners is considered as dissolution of firm, based on scrutiny of documents, then firm is liable to pay capital gains on the market value of assets of the firm as on date of dissolution less cost of acquisition.
