(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
In this case,Full Value of Consideration will be Fair Market Value i.e. 33 lacs
Since it is depreciable asset
Hence it is STCG
No indexation will be done
| Particulars | Amt |
| Full Value of Consideration | 3300000 |
| Less | |
| Expenses of Transfer | 0 |
| COA | 600000 |
| COI | 0 |
| Short Term Capital Gain/(Loss) | 2700000 |