Hi all,
I am in a very confused situation and do now know the best solution. There is a commercial plot of 2400 Sq. Yds which is owned by a partnership firm M/s A & B (Partners Mr. A & Mr. B). The firm is merely operational on books. Mr. A & Mr. B want to divide the plot equally and want to become the owners of their respective portion. Now following are the situations:
CASE 1: Mr. A retires from the partnership firm and the firm gives him his portion of 1200 Sq. yds and new partner Mr. C joins M/s A & B. Therefore, Mr. B & Mr. C becomes the new owner of the firm as well as remaining 1200 Sq. yds of the plot.
QUESTION: What would be documentation charges / stamp duty (if circle rate is Rs. 24700/- per sq. yd)? & what would be the tax implications on Mr. A?. Can Ms. A & B (through its partners Mr. B & Mr. C sell their portion owned by the firm any time?
CASE 2: The partnership firm dissolves and Mr. A & Mr. B (both partners) divide thier plot respectively. QUESTION: What would be documentation charges / stamp duty (if circle rate is Rs. 24700/- per sq. yd)? & what would be the tax implications on Mr. A & Mr. B?. Can Mr. B sell their portion any time?
Or what are the other simple & cost effective solutions to become legal and lawfull owner of thier respective protions without heavy expenditures.
