Capital gains on partner transfers to firms, AOPs or BOIs depend on book value, genuineness and valuation rules. Transfer of a capital asset by a partner or member to a firm, AOP or BOI is taxable in the year of transfer, and the amount recorded in the books of account is deemed to be the full value of consideration. The same rule applies to a member of an AOP or BOI transferring a capital asset to the concern. The notes also refer to the interaction with section 50C, section 50CA and section 56, and state that the genuineness of the transfer determines whether the special capital gains rule applies.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains on partner transfers to firms, AOPs or BOIs depend on book value, genuineness and valuation rules.
Transfer of a capital asset by a partner or member to a firm, AOP or BOI is taxable in the year of transfer, and the amount recorded in the books of account is deemed to be the full value of consideration. The same rule applies to a member of an AOP or BOI transferring a capital asset to the concern. The notes also refer to the interaction with section 50C, section 50CA and section 56, and state that the genuineness of the transfer determines whether the special capital gains rule applies.
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