TaxTMI 
TaxTMI 
ONE OF MY CLIENT IS PARTNERSHIP FIRM WHICH IS NOW DISSOLVED AND ASSETS ARE DISTRIBUTED AMONG PARTNERS AT PRESENT MARKET VALUE WHICH RESULTED IN GENERATING LONG TERM CAPITAL GAINS TAXABLE IN THE HANDS OF THE FIRM. NOW MY QUERY IS WHETHER FIRM CAN PURCHASE THE NHAI BOND AND GET EXEMPTION U/S 54EC. IF YES, IN WHICH NAME AND HOW ? AT MATURITY HOW THESE SHALL BE ENCASHED WHILE THE FIRM IS ALREADY DISSOLVED. PL. GUIDE ALONGWITH CASES, IF ANY.
CAPITAL GAINS
22 Jun 2010 
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Capital gains exemption via investment in specified bonds remains available for dissolved firms when reinvestment and compliance are properly arranged.
A dissolved partnership firm remains competent to address liabilities and compliance arising before dissolution, including filing returns and claiming capital gains exemption by investing in specified bonds. Investments may be made in the firm's name for pre-dissolution matters or in partners' names by mutual arrangement, and the dissolution deed should provide for bank accounts, investment authority, and procedures for encashment at bond maturity to enable realisation and tax compliance. (AI Summary)
A dissolved partnership firm remains competent to address liabilities and compliance arising before dissolution, including filing returns and claiming capital gains exemption by investing in specified bonds. Investments may be made in the firm's name for pre-dissolution matters or in partners' names by mutual arrangement, and the dissolution deed should provide for bank accounts, investment authority, and procedures for encashment at bond maturity to enable realisation and tax compliance. (AI Summary)