https://www.taxtmi.com/caselaws?id=15229 Retirement from a partnership and settlement of accounts does not, by itself, create a taxable gift under the Gift-tax Act unless there is a real transfer of a subsisting property right. The commentary notes that goodwill is capable of transfer, but its treatment on retirement depends on the partners' arrangement and the working out of rights between outgoing and continuing partners. A future right to share profits after retirement is not a subsisting property right capable of gift. On the stated facts, the absence of a voluntary relinquishment of an existing right in favour of incoming partners meant gift-tax was not attracted on goodwill or future profits. en-us Thu, 03 Dec 1998 00:00:00 +0530 Mon, 03 Aug 2009 18:07:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15229 Retirement from a partnership and settlement of accounts does not, by itself, create a taxable gift under the Gift-tax Act unless there is a real transfer of a subsisting property right. The commentary notes that goodwill is capable of transfer, but its treatment on retirement depends on the partners' arrangement and the working out of rights between outgoing and continuing partners. A future right to share profits after retirement is not a subsisting property right capable of gift. On the stated facts, the absence of a voluntary relinquishment of an existing right in favour of incoming partners meant gift-tax was not attracted on goodwill or future profits. Case-Laws Income Tax Thu, 03 Dec 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15229