TaxTMI 
TaxTMI 
I want to know the tax liablity of the person if he assign his share of profit from a partnership firm in which he is a partner to any other person and 2nd case is if he transfer his share in partnership firm to another partnership with that third person.
Taxability of a person to whom the profit share is assigned
05 Dec 2009 
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Taxability of assigned partnership profit shares: gratuitous transfers may be taxed in recipient under section 56.
Where a partner transfers or sells his profit share or partnership interest for consideration, the transferor is not liable to income tax on that transfer; if the share is transferred without consideration, the transfer may be taxable in the hands of the recipient under the law governing income from gifts. (AI Summary)
Where a partner transfers or sells his profit share or partnership interest for consideration, the transferor is not liable to income tax on that transfer; if the share is transferred without consideration, the transfer may be taxable in the hands of the recipient under the law governing income from gifts. (AI Summary)