Please Help: Capital Gain on transfer of property to partnership firm registered in name of partners

Posted Date : 30-Apr-2011 , 02:44:46 am | Posted By PANKAJ GUPTA

There are Two partenrs in a firm having a residential property in their joint name with registered value of Rs 10.00 lacs, They want to bring the same as capital in partnership firm at Market value, Market value of property is Rs 25 lacs, Are partners li

Category : Income Tax | Answers : 2 | Comments : 3 | Hits : 2650

Answers

Answer By: CA. Sachin Data

Please brief out the question..........

Answer By: Vaneet Gupta

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Amrish Gupta

01-May-2011 , 12:58:17 am

Pankaj- Capital Gain will arise in the hands of the partners & for this full value of consideration will be the Amount credited in to the partners capital account in the books of the firm.This is as per sec 45(3)... Sec 45(3)---[ The profits or gains arising from the transfer of a capital asset by a person to a firm or other association of persons or body of individuals (not being a company or a co- operative society) in which he is or becomes a partner or member, by way of capital contribution or otherwise, shall be chargeable to tax as his income of the previous year in which such transfer takes place and, for the purposes of section 48, the amount recorded in the books of account of the firm, association or body as the value of the capital asset shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset.