| Question And Answer | |
|---|---|
| Subject: | applicability of section 9b or 45(4) |
| Category: | Income-Tax |
| Querist: | Shubham shukla |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | capital, Firm, reconstruction |
| Date: | April 29, 2023 |
on reconstruction of a partner ship firm weather section 45(4) or section 9B is applicable when capital asset is transferred to a retiring partner
Both sections 9B and section 45(4) of the Act will operate. Section 9B will be applied first and then section 45(4) of the Act. CBDT has issued guidelines vide Circular No. 14 of 2021 dated July 02, 2021, for a better understanding of the computation.
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