TMI BlogValuation of a partner's interest in a firm.X X X X Extracts X X X X X X X X Extracts X X X X ..... s to them in profit/loss of the firm, the shares of the existing partners are reduced and the shares given to the new partners are without adequate consideration in money or moneys worth; (ii) When there are changes in the profit-sharing ratio of the existing partners of a firm and the allotment of higher shares to one or more partners is without adequate consideration in money or money's worth. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the firm, the Gift-tax Officer should, in accordance with Rule 10(3) of the Gift-tax Rules, add the value of goodwill- an intangible asset-to the market value of other assets of the firm (in case it possessed goodwill) irrespective of whether goodwill was reflected in the balance-sheet or not. As regards the types of the cases covered by item (ii) above, it was stated in para 3 of the same Ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration could be in the form of the capital introduced in business or in the form of labour, as in the case of working partner, or both. The Gift-tax Officer would have to consider the adequacy of the consideration. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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