| Question And Answer | |
|---|---|
| Subject: | gift of share in a firm to a pvt trust |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Law Intern |
| Tags: | Section 45(4), Section 9B |
| Date: | October 9, 2025 |
is it covered u/s 45[4]/9B if
1] donee is a pvt trust for relative
2] donee is a pvt trust for non relative
In my view, neither Section 45(4) nor 9B will apply because this is not a transfer by the firm to a partner. It is a transfer of a partner’s interest to a third party (the trust). These sections do not target external gifts of interests.
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