| Question And Answer | |
|---|---|
| Subject: | withdrawal of stock in trade by partner |
| Category: | Income-Tax |
| Querist: | bs |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Partner, stock in trade |
| Date: | July 16, 2022 |
If any partner withdraws an item of stock in trade of a builder firm [say 1 flat] at cost, what are tax implication on firm and partner both ?
43CA/56[2]x are applicable ?
Yes, section 43CA of the Income-tax Act, 1961 (Act) will be attracted in the hands of the Partnership Firm. The Stamp Duty Value of the property will be taken as the Sales price. Similarly, the difference between the Stamp Duty Value and Price paid by the partner will attract section 56(2)(x) of the Act in the hands of the Partner.
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