(1) If on dissolution some capital asset distributed to partner/member then

FMV (fair market value) will be treated as full value of consideration .

(2) This will be capital gains of the partnership firm / AOP / BOI.

(3)  In this case amount recorded in books is not relevant .

 

Examples

 

Question 1

WDV of building is 6 lacs in partnership fims books

HoweverFMV of bullding is 33 lacs

Suppose partnership firm AB was dissolved on that date

Partner A had 30 lacs due in his capital account  He was given this building as full settlement.

View Answer
  1. Income Tax
  2. Income from Capital Gains

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CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.