Question And Answer
Subject: 54EC and 9 B
Querist: Kulkarni P.S
Answered by:
Tags: ,
Date: June 14, 2022
Query asked by Kulkarni P.S

On dissolution of firm, when it pays capital gain tax u/Sec. 9B, whether firm is elegible to claim exemption U/Sec. 54EC if assets distributed To partner is long term capital asset.

If the firm decided To make investment in specified bonds and then distribute the same to partners in its books of accounts and record the same facts in dissolution deed and If partners offer the income accruing on the in investment on year To year basis, is it possible to claim the amount received on Redumption after five years completely tax free?

Whether credit for TDS is available to partners

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As we infer, there is a dissolution of a Partnership, pursuant to which a capital asset will be transferred to a partner which will attract section 9B of the Income-tax Act, 1961 (Act). On a plain reading of the statute, Deduction under section 54EC of the Act should be allowed to the Specified entity (provided other conditions are satisfied).

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