Income tax implication on sell of LLP

[Sanjay Lunia]

I am having LLP in which I have under construction property.

If I sell the LLP either to company or Individuals then who is liable to pay taxes?

As per my understanding it is partner who is liable to pay tax.

Tax would be capital gain either short term or long term depends on number of months of holding (if more than 24 months then long term else short term)

Rate of tax would be 12.5% in case of Long term and slab rate in case of short term.

I request the member, please either confirm or enlighten my understanding.

Thank you for your support and advice.

AI Summary

Capital gains liability on sale of LLP interests: partners may bear tax based on holding period and applicable rates. Sale of an LLP or its interest in an under construction property is queried as raising tax consequences; the asker understands that tax liability rests with the partners. The tax consequence is described as a capital gain, classified by holding period (more than twenty four months as long term; otherwise short term), with long term gains said to attract a concessional rate and short term gains taxed at slab rates.