Gift…A gift is a voluntary transfer of property from

one person to another without any consideration.

A gift involves three elements:The donor intends to transfer ownership of the

property to the donee immediately.The donor delivers the property to the donee.The donee accepts the property.

Continued… An inter vivos gift – is a gift given during life

and with no expectation of death.The gift is valid, if it meets the basic conditions

of a gift.A gift causa mortis – is a gift given in

expectation of dying soon.The gift is valid, if it meets the conditions of a

gift, and the giver dies as expected.The giver may rescind the gift at any time, and

it is automatically rescinded if the giver does not die as expected.

Donor and Donee… Donor: A person or entity making a gift or donation is

known as the donor i.e giver of the gift.

Donee: A person or entity receiving an outright gift or

donation i.e. receiver of the gift.

Assignment… A transfer of rights in real property or personal

property to another that gives the recipient(the transferee), the rights that the owner or holder of the property(the transferor), had prior to the transfer. Statutes regulate the extent to which an assignment may be made.

For Example: An assignment of wages is the transfer of the

right to collect wages from the wage earner to his or her creditor.

Transfer…Any and every method of removing

something from one person or place to another; specifically, the handing over of possession or control of assets or title. Transfer may be affected by assignment, by delivery, by endorsement, and by operation of law.

Proprietorship…A sole proprietorship, also known as the sole

trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.

The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts.

Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships.

Continued…Glos and Baker write that "A sole

proprietorship is a business owned by one person who is entitled to all of its profits," and Reed and Conover say "The single or the sole proprietorship is a business owned and controlled by one man even though he may have many other persons working for him." A sole proprietor may use a trade name or business name other than his or her legal name

Partnership…

Section 4 of the partnership act 1932 defines partnership as “the relation between persons who have agreed to share the profits of business carried on by all or any of them acting for all.”

Formation of Partnership…Partnership may be express (in writing or oral);

or may be implied, i.e. it may be inferred from the conduct of the parties.

It is based on an agreement between two or more persons joining hands together to share the profits of the business carried on by all or any one of them acting for all.

Partnership agreement should comply with the essentials of an ordinary contract.

Parties of partnership should be competent to contract.

A minor may be admitted to the benefits of partnership with the consent of all the other partners .

Partnership business and object must be lawful.

Continued… As relationship of partners to one another is that of

agency, no consideration is required to create the partnership.

Though partnership may be implied from the conduct or course of dealing of the parties, it is advisable to form partnerships by an agreement in writing. This agreement is called a partnership deed which should be adequately stamped as required by the Indian stamp act 1889.

The partnership deed contains names and addresses of the partners, name and address of the firm, duration of the firm, profit sharing management accounts etc

Legal status of partnership… A Partnership firm has no separate legal

existence. As it is a name given to the collective relationship of person it has no separate legal existence from its partners. The right and obligation of a firm are infact rights and obligation of the partners constituting the firm. It is not a legal person and therefore enjoys no separate right independent of its partners. However under the income tax act, the firm is considered a separate legal entity for taxation purpose. Partners are not individually taxed on the share of income received by them.

Continued…It is the partner who owns jointly in common the

asset of the partnership. In consequence of the dissolution, division on allotment of assets to the partners which follows upon dissolution after discharge of liabilities is nothing but a mutual adjustment of rights between the partners and there is no question of extinguishment of the firms rights in the partnership assets amounting to transfer of assets. There is therefore, no transfer of assets involved even in the sense of any extinguishment of the firms rights in the partnership assets when distribution takes place upon dissolution.

Limited Liability Partnership(LLP)…

LLP is a new corporate structure that combines the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost.

In other words, it is an alternative corporate business vehicle that provides the benefits of limited liability of a company, but allows its members the flexibility of organising their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.

Feature of LLP…The LLP is a body corporate and a legal entity

separate from its partners. Any two or more persons, associated for carrying on

a lawful business with a view to profit.The LLP will have perpetual succession.The compromise or arrangement including merger

and amalgamation of LLPs shall be in accordance with the provisions of the LLP Act 2008.

The Central Government has powers to investigate the affairs of an LLP, if required, by appointment of competent Inspector for the purpose.

Campus Overview

907/A Uvarshad, GandhinagarHighway, Ahmedabad – 382422.

Ahmedabad

Kolkata

Infinity Benchmark, 10th Floor, Plot G1,Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091.

Mumbai

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.

Thank You…