Yea it can transfer to partners during dissolution or otherwise. But same will attract tax liability 

firm has to execute conveyance deed for transfer of property of firm in name of individual partners 

it should be duly stamped and registered 

the below is my preliminary view

a partnership firm is not a distinct and separate legal entity like a LLP or a company

a partnership firm does not have any juristic personality of its own like a LLP or a company

a partnership firm is merely an association or congregation of more than 2 people who run the business of the firm as its partners

so the firm per se does not own any immovable property 

if it cannot own any property by itself then as a necessary corollary thereto it can also not transfer any such property to its partners

the property vests in all the partners in the agreed percentage as would be mentioned in the deed of partnership

so the firm can simply be dissolved by executing a deed of dissolution providing for how and in what manner the property is to be dealt with 

the above reply is subject to further legal research upon considering the Partnership Act, Transfer of Property Act, stamp act and registration act 

- As per law, a partnership firm cannot hold property in its name , and the property should be in the names of all partners or the authorized partner as per the partnership deed.

- Further, as per the provisions of the Indian Partnership Act, all the partners are under obligation to follow rules and regulations as mentioned in the Partnership deed, and even a partner is not allowed to transfer his share without the consent of other partners. 

- Hence, dissolution of the firm is necessary before transferring the property or as mentioned in the Partnership deed. 

- Further as per Section 14 of the Partnership Act, the property exclusively belonging to a person, on his entering into partnership with others, does not become a property of the partnership merely because it is used for the business of the partnership, in the absence of an agreement to the contrary.

Dear client, According to the Indian Partnership Act of 1932, a firm's property must be used and held solely for the firm's purposes.Throughout the partnership's existence, no partner has a proprietary interest in the firm's assets.A partner can, however, purchase property in their name by having all partners sign a registered sale deed on behalf of the partnership firm.

In India, the transfer of property from a firm to its partners in their personal names is governed by the Indian Partnership Act of 1932. The Act defines the rights, duties, and liabilities of partners in a partnership firm. The jurisdiction for matters related to partnerships and property transfers in Maharashtra falls under the Courts in Maharashtra.

When a firm intends to transfer its property to all partners in their personal names, the process typically involves the dissolution and reconstitution of the firm. Each partner would need to agree to take ownership of the property individually, and legal documents such as deeds of conveyance or transfer would have to be executed to effectuate the transfer.

If a firm wants to transfer property to only two partners while one partner holds a minority stake as a sleeping partner, the consent of the sleeping partner would likely be necessary due to their legal stake in the firm. The terms of the partnership agreement would also need to be reviewed to ascertain the rights and obligations of each partner in relation to property transfers.

Arunkumar Khedia
Advocate Bombay HighCourt

Section 14 of the  Partnership Act defines what constitutes Partnership property. The property of the firm is nothing however the joint property of the partners control in their joint names as hostile the properties in hand by the individual partners in their personal names. Partnership property consists of property originally brought in by the individual partners as their capital contribution or might incorporates property purchased by the partners collectively out of the funds happiness to the partnership concern. 

If the property purchased was within the name of a partner of the firm and on his death, his share, right, interest within the property would vest in his heirs or legal representatives. Just in case of transfer of such property, the heirs/legal representatives of the deceased partner ought to additionally be part of the execution of the document.

The Indian Partnership Act, 1932,  governs the conduct of the partnership business.

The document containing the terms of the partnership agreement, powers of the partners and objectives of the partnership is known as the partnership deed.

You may visit the deed of your firm for taking decision as per the guidelines of the deed.