https://www.taxtmi.com/caselaws?id=23948 A partner's retirement from a firm, without a distinct transfer of goodwill or any other existing property, does not amount to a taxable gift under the Gift-tax Act, 1958. The definition of "gift" requires a voluntary transfer of existing movable or immovable property without consideration, and "transfer of property" contemplates an alienation from one person to another. On retirement, there is only a readjustment of rights among the partners in the partnership assets, not a transfer of specific property or future profits. The transaction is therefore a settlement of partnership rights, and no gift arises. en-us Wed, 07 Jun 1989 00:00:00 +0530 Fri, 15 Jan 2010 14:04:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23948 A partner's retirement from a firm, without a distinct transfer of goodwill or any other existing property, does not amount to a taxable gift under the Gift-tax Act, 1958. The definition of "gift" requires a voluntary transfer of existing movable or immovable property without consideration, and "transfer of property" contemplates an alienation from one person to another. On retirement, there is only a readjustment of rights among the partners in the partnership assets, not a transfer of specific property or future profits. The transaction is therefore a settlement of partnership rights, and no gift arises. Case-Laws Income Tax Wed, 07 Jun 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23948