CBDT issues guidelines on capital gains

 









The Central Board of Direct Taxes (CBDT) on Friday issued a set of guidelines to be applied in determining tax liability in cases where partnership firms are restructured or dissolved.


The guidelines seek to bring clarity on the methods to be followed while computing tax liability after the Finance Act, 2021, introduced a new section 9B in the Income Tax Act and substituted another provision - 4 of section 45

The changes are applicable from assessment year 2021-22. These sections deal with deemed transfer of a capital asset or stock in trade to an exiting partner of a firm and receipt of capital asset or funds by a partner from a firm. The Finance Act specifies that any profits and gains arising from such deemed transfer is treated as the income of the partnership.

The changes are applicable from assessment year 2021-22. These sections deal with deemed transfer of a capital asset or stock in trade to an exiting partner of a firm and receipt of capital asset or funds by a partner from a firm. The Finance Act specifies that any profits and gains arising from such deemed transfer is treated as the income of the partnership.


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